Google 3Q Earnings Rise 26 Percent, Top Analysts' Views
MOUNTAIN VIEW (CBS SF) - Google's third-quarter earnings show that the mounting worries about another global recession haven't shaken the Internet's search and advertising leader so far.
The results released Thursday are the latest reminder of how Google Inc. has used its position as the Internet's dominant gateway to build a business that weathers economic turbulence better than most companies.
Investors quickly showed their approval as Google's stock price surged 6 percent. The stock climbed $33.37 to $592.36 in extended trading after the release of results.
Google earned $2.7 billion, or $8.33 per share, in the three months ending in September. That was up 26 percent from nearly $2.2 billion, or $6.72 per share, a year earlier.
If not for expenses covering employee stock compensation, Google would have earned $9.72 per share. That figure easily beat the average estimate of $8.77 per share among analysts surveyed by FactSet.
Revenue climbed 33 percent from last year to $9.7 billion.
After subtracting the commissions that Google pays its advertising partners, Google's revenue stood at $7.5 billion - about $200 million above analyst projections.
Analysts had been bracing for a slight slowdown in Google's growth, assuming the economic turbulence that roiled the stock market during the summer would have some fallout as advertisers grew more cautious and tightened their ad budgets.
Instead, Google's year-over-year revenue growth in the latest quarter was better than the 32 percent increase posted for the April-June stretch. It marked the fourth straight quarter of year--over-year revenue growth for the company.
The performance should also bolster Wall Street's faith in Google CEO Larry Page, who initially got a cool reception from investors when he replaced Eric Schmidt six months ago. Google has now blown past analyst forecasts in both quarters with Page calling the shots
(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
