Google (GOOG, $589.96) Down on Earnings Report

 Google reported earnings yesterday, missing Wall Street’s revenue expectations.

Morgan Stanley lowered its price target to $592, and S&P raised its price target to $700.

“GOOG posts Q4 EPS of $8.22, vs. $7.81, well below our forecast of $9.23 and the Capital IQ consensus estimate of $9.14, reflecting some less favorable non-operating items than we expected. Revenues rose 25%, below the 30% rate we projected, despite 34% growth in paid clicks, reflecting a cost-per-click decline we did not anticipate, owing to forex and Q3 quality improvements.We are lowering our ’12 EPS estimate to $37.25 from $40.50 and setting ’13’s forecast of $44.00. Reflecting our higher near-term FCF outlook, however, we are raising our target price to $700 from $625.” — Standard & Poor’s Research, January 20, 2012

I’ll need to give Wall Street a week or so to update all their projections, and then I’ll report back as to how earnings growth revisions look.