Wells Fargo Reiterates Market Perform on Google on Solid Topline Driven by Strong International Growth

In a report published Friday, Wells Fargo Securities analyst Peter Stabler reiterated a Market Perform rating on

. In the report, Wells Fargo Securities noted, “Reported top-line growth (ex-currency; ex-Motorola) of 21% beat our estimate of 17% and consensus at 19%. International led with substantial move of 32% (ex-currency) for core Google properties as click growth outpaced CPCs that failed to show improvement due to Enhanced Campaign platform migration. Sequential CPC move of -4% was consistent with last two years, suggesting that mix-shift to international likely offset modest progress in U.S., a positive in our view. Network revenues remain under pressure (flat yr/yr) due to rule changes, but we remain optimistic that lapping of rule implementations will re-instate growth profile. Adjusted operating margin of 36.4% compared to our 37.2%, driven by higher than expected cost of revenue (+360bps above our est). Flowing through results and adjusting our expectations, our FY2013 revenue ex-TAC estimate climbs to $47,029MM. Non-GAAP EPS forecast moves to $43.82 from $43.68 and FY2014 non-GAAP EPS estimate is lowered to $51.83 from $52.08.” Google closed on Thursday at $888.79.