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Google Beats Earnings Expectations on Mobile, Advertising Growth

Search giant’s shares spike nearly 7 percent to $580.04 after better-than-expected performance

Google bested Wall Street predictions Thursday, delivering second quarter earnings performance that showed mobile and programmatic advertising growth.

Wall Street forecasts projected a per-share price of $6.71 on $17.75 billion in revenue, according to Yahoo Finance. Thompson Reuters forecasted $6.70 per share.

Google delivered $6.99 per share, up from $6.08 per share a year ago, while reporting $17.73  billion in revenue, up from $15.97 billion a year ago.

Net income rose to $3.93 million for the quarter that ended June 30th, compared to $3.42 billion for the same period a year ago. Traffic acquisition costs came in at $3.38 billion.

Paid clicks increased by 7 percent — significantly less than Wall Street forecasted — while Google’s cost-per-click shrunk 4 percent, better than expected. Aggregate cost-per-click fell 11 percent year over year, while aggregate paid clicks surged 18 percent during the same period.

Following the unexpected good news, the search giant’s shares spiked nearly 7 percent to $580.04.

New CFO Ruth Porat lauded the company’s mobile performance along with that of YouTube.

“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”, Porat said. “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 kicked off its earnings call at 4:30 p.m. ET.

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