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from the L.A. Times

Google revenue, profit grew in second quarter; market yawns

Eric Schmidt

Google CEO Eric Schmidt. Credit: Google.

Google this afternoon said its revenue rose 3% in the second quarter in spite of the global economic downturn. Profits also grew 18% to $1.48 billion from last year's $1.25 billion.

The Mountain View, Calif., search giant's revenue of $5.52 billion in the quarter ended June 30 was up from $5.37 billion in the same period last year. Google Chief Executive Eric Schmidt, in a statement, said the results were positive in light of the challenging economic climate:

Google had a very good quarter, especially given the continued macro-economic downturn. While most of the world's largest economies shrank, Google's year-over-year revenues were up 3%. These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs.

But investors were unimpressed. Its shares, which closed up $4.43 at $442.60, shed more than $12, or close to 3%, in after-hours trading following the company's earnings release.

Though Google's performance beat analyst predictions, expectations were heightened after Intel earlier this week posted strong results and signaled that a possible recovery may be on the way.

-- Alex Pham

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