NEW YORK (Reuters) - Google Inc’s second quarter net income rose a better-than-expected 36 percent, as stronger sales softened the impact of rising costs at the Internet giant.
Shares of Google jumped more than 12 percent in late trading on Thursday following its quarterly report, which also showed revenue ahead of expectations.
SAMEET SINHA, ANALYST, B. RILEY & COMPANY
“Revenues were very strong, international was extremely surprising.”
“Most of those revenue gains were coming from the Google.com website rather than its partner websites, so traffic acquisition costs are much lower and gross margins came in much higher than expected.”
“Operating expenses went up, but definitely not as much as expected. That went all the way to the bottom line and that’s why we see this pretty surprising beat on EPS.”
“Google should be viewed as a growth company again this quarter. This is well beyond expectations from Wall Street. Clearly, the combination of mobile search, Android, ad exchange, YouTube, and the core search businesses, they’re all doing well. Google is no longer a one trick pony. You might say six trick pony if you count Google Plus.”
“The number to focus on is really the GAAP earnings number. Google spent aggressively, hiring just as many people this quarter as they did last quarter.”
“It’s a nice headline beat. Revenue growth overrides the hiring and the expense issues.”
“Nice quarter from the guys, but you still have a situation of declining margins.”
Reporting by Bill Rigby in Seattle and Mary Slosson in Los Angeles, Compiled by Paul Thomasch