SAN FRANCISCO — Google shares rose sharply in after-hours trading just moments following the Internet giant’s posting of its second-quarter financial results.
Google surprised investors with a better-than-expected performance, earning $ 6.99 a share and beating Wall Street estimates of $ 6.70 a share, showing that Google has started to keep costs in check.
Sales excluding revenue passed on to partners rose 13% to $ 14.35 billion. Wall Street had expected $ 14.3 billion.
Google shares soared nearly 7% to $ 580.04. The financial results were posted after the close of trading on Thursday.
"Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising", Google Chief Financial Officer Ruth Porat said in a statement. "We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."
This was Porat’s first quarter as CFO. She joined Google from Morgan Stanley in May.
The search giant said its revenues would have been more than $ 1.1 billion higher if not for foreign exchange rates,
Paid clicks rose 18% in the quarter. Analysts had expected a 14% increase. Cost per click fell 11% from a year ago, however, more than analysts had forecast.
Google GOOG shares
Google shares vs. Nasdaq over one year. (Photo: USATODAY.com)
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