Google easily beats analysts' forecasts

YESTERDAY
Close	$501.50
Change	+$7.18
52-WEEK
High	$513.00
Low	$331.55

Google Inc.'s fourth-quarter profit nearly tripled amid another burst of breathtaking growth that enabled the online search leader to sprint past analyst expectations -- a habit that has helped propel its stock price above $500.

The Mountain View, Calif.-based company said it earned $1.03 billion, or $3.29 per share, during the final three months of 2006. That compared with net income of $372.2 million, or $1.22 per share, at the same time in 2005.

If not for expenses for employee stock compensation and gains from tax benefits, Google said it would have earned $3.18 per share. That figure easily exceeded the average analyst estimate of $2.92 per share among analysts surveyed by Thomson Financial.

Google has topped analysts' expectations in all but one of its 10 quarters as a publicly held company.

Revenue for the period totaled $3.2 billion, a 67 percent increase from $1.92 billion in the prior year. (AP)

Sepracor shares fall in high volume

Shares of Sepracor Inc. moved lower after the drug maker's 2007 earnings forecast fell short of Wall Street estimates despite a strong fourth quarter.

Shares of Sepracor lost 5.2 percent on the Nasdaq at nearly five times their average volume.

The Marlborough company reported its fourth-quarter profit nearly tripled to $99.1 million, or 85 cents per share, on revenue of $357.2 million, a 15 percent increase. Analysts expected more modest earnings per share of 62 cents on revenue of $341.4 million.

However, the company later forecast 2007 earnings per share of $2.25 on sales of $1.46 billion, compared with a Wall Street consensus of $2.40 per share on sales of $1.44 billion.

Cowen & Co. analyst Ian Sanderson used the opportunity to downgrade the company to "underperform," stating that sluggish sales of the sleep aid Lunesta were hidden by lower marketing costs and a boost in sales of Xopenex asthma medication sales. (AP)

Haemonetics hurt by Japan business

Haemonetics Corp., which makes automated blood-processing systems for the health care market, reported a full-year earnings outlook bracketing Wall Street estimates.

The Braintree company said its revenue continues to be affected by sales declines in the Japanese business and it now expects a full-year 2007 adjusted profit of between $2.05 and $2.17 per share on revenue growth of 7 to 9 percent. Earnings on a reported basis are seen at $1.62 to $1.76 per share.

Analysts expect full-year earnings of $2.08 per share on sales of $455.6 million.

Haemonetics said its third-quarter net income fell to $16.9 million, or 62 cents per share, from $27.9 million, or $1.01 per share, a year ago. Last year's quarter included a 61 cents per share benefit from a non operating arbitration award, according to the company.

Adjusted earnings for the third quarter, excluding certain charges and benefits, were 55 cents per share, according to the company.

Sales rose to $113.5 million from $105.7 million last year.

Wall Street analysts expected a third-quarter profit of 51 cents per share on sales of $115.2 million. (AP)

Time Warner profit rises 34 percent

Time Warner Inc., the world's largest media company, said fourth-quarter profit rose 34 percent, helped by the purchase of Adelphia Communications Corp.'s cable television unit.

Net income advanced to $1.75 billion, or 44 cents a share, from $1.3 billion, or 28 cents, a year earlier, the New York company said. Sales gained 8.2 percent to $12.5 billion.

Profit before one-time items was 22 cents a share, matching the average estimate of 17 analysts polled by Bloomberg. (Bloomberg)