After making some changes to its advertising formula and picking up its growth outside the United States, Google Inc. reported a first-quarter profit that pleased its shareholders, surpassed analysts' predictions and boosted its stock.
The news, released after Wall Street closed Thursday, lifted Google's slumping shares by more than 76 U.S. dollars, or 17 percent.
"This is mostly a relief rally," said Stanford Group analyst Clayton Moran. "People are relieved that things aren't as bad as they thought."
Google's global business boosted the Mountain View, California-based company as more than half its revenue came from outside the United States for the first time in its 9 1/2-year history.
The Internet search leader announced it earned 1.31 billion dollars, or 4.12 dollars per share, during the first three months of the year. That represented a 30 percent increase from net income of 1 billion dollars, or 3.18 dollars per share, in the first quarter of 2007.
If not for expenses to cover stock given its employees, Google said it would have made 4.84 dollars per share.
That figure outstripped the average projection of 4.52 dollar per share among analysts surveyed by Thomson Financial.
"It's clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by," Google Chief Executive Eric Schmidt told analysts during a Thursday conference call.
Source: Xinhua/Agencies
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