SAN FRANCISCO–Google Inc. says its third-quarter profit soared 46 per cent, hurdling the enormous expectations that have elevated the Internet search leader’s share price more than $100 (U.S.) in the past month. The California-based company earned $1.07 billion, or $3.38 per share, for the three months ended in September, up from $733.4 million, or $2.36, at the same time last year.

If not for the cost of awarding shares to the steadily expanding workforce, Google would have earned $3.91 per share, the company said. That topped the average estimate of $3.78 among analysts surveyed by Thomson Financial.

Revenue totalled $4.23 billion, up 57 per cent from $2.67 billion, while cost cuts exceeded forecasts.

After subtracting commissions paid to thousands of advertising partners, Google’s revenue stood at $3.01 billion, about $70 million more than the average analyst estimate.

The performance represented a return to form for Google after its second-quarter earnings disappointed Wall Street. The company has surpassed analyst estimates in all but two of the 13 quarters since the August 2004 initial public offering.

“Looking back at the quarter, it’s obvious our model works very well,” Google chair Eric Schmidt told analysts during a conference call. “It’s all very exciting from the Google perspective.”

The share price smashed through $600 for the first time during the past month.

Yesterday, Google gained $6.14, or almost 1 per cent, to $639.62 on the Nasdaq Stock Market, leaving the firm with a market value of just a little less than $200 billion.

From: thestar.com

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