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Google blows away third-quarter earnings [Updated]

October 13, 2011 |  1:23 pm

Google

Google+ is right.

The Internet search giant's stock soared as Google crushed Wall Street expectations for the third quarter.

And that's after analysts increased estimates for Google in recent weeks.

Google's profit jumped 26%, while revenue rose 33% to $9.72 billion.

Google said it earned $2.73 billion in net income in the third quarter. Earnings per share, excluding certain items, were $9.72 during the third quarter, it said. Analysts had estimated $8.77 a share.

The stock is up $39.87, or 7%, to $588.37 in after-hours trading.

[Update 1:38 p.m.: Google's chief executive, Larry Page, used one word to describe the quarter: "Gangbusters." 

"We are still at the very early stages of what technology can deliver," Page said during a conference call with analysts. 

Analysts note that Google is not cutting back on expenses (it hired as many people this quarter as last), but revenue is growing.

"The boys of summer are back," BGC Partners analyst Colin Gillis said. "Google's results are a great way to kick off the September quarter for technology companies."

Google, which is contending with rising competition from social networking juggernaut Facebook, said it had signed up more than 40 million users for the Google+ social network it launched in June and opened to the public in September.]

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-- Jessica Guynn

Photo: Google lets smartphone makers use its mobile operating system Android. Photo credit: Brendan McDermid / Reuters 

 

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