Google Rockets Higher on Q3 Results
Shares of Google (NASDAQ:GOOG) were sent soaring to the upside on Friday morning following a spectacular third quarter report after the market close on Thursday. Google shares, which are up by more than 25% percent already this year, rose more than 12 percent early in the session on Friday. Net income rose 36 percent to $2.97 billion, or $8.75 a share, in the third quarter from $2.18 billion, or $6.53 a share, in the third quarter of last year. Excluding items, Google stated its earnings rose to $10.74 per share. Revenue increased 12 percent to $14.89 billion from $13.3 billion a year ago. These results came better than the street had anticipated on both the top and the bottom lines. Analysts had expected Google to report earnings excluding items of $10.34 a share on $14.79 billion in revenue, according to a consensus estimates.
The average “cost-per-click”, or the price that advertisers pay Google for clicks on their ads fell by around 8 percent from the third quarter of last year. Paid clicks increased by 26 percent, strong growth in comparison to its peers as of late. Internationally-generated revenue represented 56 percent of the total revenue, up from last year’s 53 percent. Mobile has become an increasingly important segment for the company. The company’s Chief Executive Officer, Larry Page, had this to say about Google’s mobile progress:
“Almost 40 percent of YouTube traffic now comes from mobile, up from 6 percent two years ago,” he said. “I’m spending most of my time on mobile, not so much on desktop— that’s what people will do over time.”
Going forward, Google will concentrate more heavily on this division in hopes of greater monetization. At the time of this writing, shares were up by 12.75 percent to $1002 per share.
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