Date
26 July 2017
The arrival of Ruth Porat as chief financial officer has reassured investors that Google will keep its costs under control. Photo: Bloomberg
The arrival of Ruth Porat as chief financial officer has reassured investors that Google will keep its costs under control. Photo: Bloomberg

Google surges as profit beats forecasts

Google Inc.’s earnings topped analysts’ estimates amid slower spending, sending the stock up as much as 14 percent in late US trading on investor optimism the internet search giant can keep costs in check, Bloomberg reported Friday.

Second-quarter profit before certain items was US$6.99 a share, the company said Thursday.

Sales, minus revenue passed on to partners, rose 13 percent to US$14.4 billion.

Analysts had projected an average of US$6.73 a share in profit on US$14.3 billion in sales, Bloomberg data shows.

Operating expenses climbed 13 percent from a year earlier, a smaller rise than the 21 percent jump in the first quarter.

The arrival of new chief financial officer Ruth Porat in May has assuaged investor concerns that chief executive Larry Page’s spending on projects outside the main search-advertising business — from driverless cars to computerized spectacles — would keep accelerating without paying off in higher revenue.

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CG/FL

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