The stock price of Google (NASDAQ:GOOG) climbed more than 7% to $957.50 per share after hours on Thursday driven by its third quarter financial results that outperformed the consensus estimates of Wall Street analysts.
The search engine giant generated $10.74 earnings per share on $14.89 billion revenue. Google beat the consensus estimate of analysts of $10.34 earnings per share on $14.79 billion revenue based of data compiled by Thomson Reuters.
In a statement, Google CEO Larry Page said, “Google had another strong quarter with $14.9 billion in revenue and great product progress. We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”
Google ended that quarter with $56.52 billion cash, cash equivalents, and marketable securities. The company has 46, 421 full-time employees as of September 30. Its stock price increased by approximately 24% this year.
Google said its consolidated revenue during the quarter increased by 12% compared in the same period a year ago.
Based on its financial statement, its Google Segment revenues were $13.77 billion, which represents 92% of its total revenues. Google Sites generated $9.39 billion, Google Network (partner sites) delivered $3.15 billion, and other revenues from Google segment were $1.2 billion. The company’s international revenues were$7.67 billion. Google generated $1.39 billion revenue from its business operations in United Kingdom.
Google said the revenues of its Motorola Mobile Segment were $1.18 billion during the quarter. The company’s Google segment revenue obtained a benefit of $22 million through its foreign exchange risk management program, lower than the $62 million recorded last year. According t the company if the foreign exchange rate remained constant from second to third quarter, its Google Segment revenues would be higher by $41 million.
The search engine giant reported that its average cost-per-click declined by 4% from the second quarter or 8% lower than its average cost-per-click in the third quarter last year. The cost-per-click includes clicks related to ads serves in Google sites and sites of its network members.
The company said its aggregate paid click increased by 8% from the second quarter or 26% from the third quarter a year earlier. The company said its traffic acquisitions costs (TAC) was $2.97 billion, 24% of its advertising revenues.