Google Shares Rise on Strong Quarterly Financials
Google said Thursday that it earned $10.74 cents per share on an adjusted basis in the most recent quarter, besting the expectations of analysts by 40 cents. Without adjustments, net income was $3 billion, up from $2.2 billion a year ago.
Revenue for the Internet search giant rose 12 percent to $14.89 billion, about $100 million more than analysts had expected. Revenue after traffic-acquisition costs was $11.92 billion, better than the $11.64 billion expected by analysts.
Google shares, which were down one percent to $888.65 during the regular session, jumped nearly $70 during after-hours trading. If the gain survives, Google could open at an all-time high Friday with a market capitalization eclipsing the $300 billion mark.
Google's impressive third-quarter results came despite rising losses at its Motorola mobile phone unit. Google said Motorola's loss in the quarter was $248 million, up from a $192 million loss in the same quarter a year ago.
One worrisome trend was an eight percent decrease in cost-per-click, which is the amount Google gets when users click on ads, but Google more than made up for it with a 26 percent increase in paid clicks.
On a conference call to discuss earnings, CEO Larry Page told analysts that 40 percent of the traffic at Google's YouTube now comes from mobile users, up from six percent just two years ago.
Page, who has been struggling with paralysis of a vocal chord, told analysts Thursday that he would not be participating in all of the upcoming earnings calls going forward because he needs to prioritize his time.