October 20, 2006

After the markets closed yesterday, Google reported 3rd quarter sales and earnings that beat most analysts' estimates, as the company continues to benefit from strong demand for Internet advertising.

Google's stock went up over 7.5 percent in extended-hours trading. On Thursday, shares gained more than 1.6 percent in regular trading on Nasdaq.

Overall, shares of Google are in the black for 2006, while the stock of most other Internet bellwethers have taken a beating so far this year.

Google reported third quarter sales of $2.69 billion, up 70 percent from 2005. Excluding TAC (traffic acquisition costs) that the company shares with its partners, the company's sales were $1.87 billion, well ahead of the Street's forecast of $1.81 billion in sales.

Google reported net income of $733 million, or $2.36 a share, up 92 percent from the same period last year. The company posted a profit, not including certain gains and charges, of $2.62 a share. That was higher than consensus estimates of $2.42 a share forecasted earlier.

The company has surpassed Wall Street's earnings expectations seven out of eight quarters since going public in August 2004, and has typically done so by a fairly wide margin.

Google's strong earnings were the latest good news for the company.

Source: CNN Money