Google (GOOG) Investors Cheer as Q2 Sales Much Better Than Expected

July 19, 2012 4:59 PM EDT
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Google (Nasdaq: GOOG) shares are edging higher Thursday afternoon as traders are responding to a very slight bottom-line beat and sales which looked solid.

The Mountain View, California-based search giant saw second-quarter sales rise more than 35 percent from $9.03 billion during the same quarter last year to $12.21 billion. Excluding the all-important traffic acquisition costs, Google posted revenue of $9.61 billion, sharply better than the $8.41 billion analysts were expecting.

Net income totaled $2.79 billion, up about 11 percent from $2.51 billion in the year-ago quarter. Adjusted profit came in at $3.35 billion, or $10.12 on a per-share basis. This figure was up nearly 16 percent on a year-over-year basis. Analysts on the Street were looking for adjusted EPS of $10.04.

Google said sales to company-owned sites were up 21 percent to $7.54 billion, making up about 69 percent of the company's total sales.

The company said foreign exchange reduced second-quarter sales by about $68 million. Google's sales in the UK were $1.18 billion, making up about 11 percent of total sales.

Net cash provided by operating activities in the second quarter of 2012 totaled $4.25 billion, compared to $3.52 billion in the second quarter of 2011.

Google shares last traded at $613.40, up more than 3 percent from Thursday's closing price.

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