Google Wows Wall Street

by admin October 21, 2005 at 11:15 am

Shares of Google soared to a new all-time high late Thursday after the company’s third-quarter earnings and sales crushed Wall Street estimates.

Google’s pro-forma earnings of $1.51 a share trounced $1.36 estimates, and net revenues (revenues after traffic acquisition costs) doubled from the year-ago quarter to $1.05 billion, well ahead of $943 million estimates. Google ended the quarter with $7.6 billion in cash, a healthy war chest for potential acquisitions.

The results were even more surprising because the company had taken steps to lower expectations during its second-quarter conference call.

“Although this is typically a slower season for Internet properties, we had another exceptional quarter,” Google CEO Eric Schmidt said in a statement. “Our focus on end users and on quality of information and advertising worldwide continues to work extremely well. We are very pleased with how well this is working at scale.”

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