Google Spikes 8% After Reporting Better-Than-Expected Q2 EPS Of $6.99

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Today following the bell, Google reported its second-quarter financial performance, including revenue excluding traffic acquisition costs (ex-TAC) of $14.35 billion and adjusted earnings per share of $6.99. The street had expected the company to earn $6.70 per share on ex-TAC revenue of $14.27 billion.

Google’s stock hopped as high as 8 percent (UPDATE: 11 percent as of 2 p.m. PT) after hours after it closed the day at $599.91.

Google-Ruth-Porat-APThis is Google’s first quarter with its new CFO, Ruth Porat, at the helm. Porat said about today’s results:

Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising. We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation.

Google’s revenue grew by 11 percent compared to the year-ago period, while its net income expanded. The firm’s total profit on an adjusted basis totaled $4.82 billion, and $3.93 billion using normal accounting techniques.

Google ended the quarter with $69.7 billion in cash and equivalents.

The market has recently focused on Google’s cost profile, especially in the context of the company’s slowing revenue growth. The market had expected Google’s revenue to grow just 13 percent over its year-ago quarter, for example. That, stacked next to Google’s trailing PE ratio of 27 is a somewhat awkward dissonance.

The company spent $2.78 billion on research and development.

Google ended regular trading worth around $390 billion. That values the company roughly $15 billion more than its rival Microsoft, making it the second most valuable company in the world behind Apple.

Here’s a weird Android dude to look at while we wait for the earnings call:

galaxy-s2-root-business

UPDATE: Nothing new was shared during the earnings call, but YouTube (watch time on mobile has increased 50 percent over the past year) is a star, as is mobile growth.

This explains the day for Google: