Shares of Google Jump on Earnings

Shares of technology and search engine giant Google (GOOG: Nasdaq) jumped higher overnight as the company reported quarterly product that beat, quite easily, Street expectations. This was helped by advertising revenue.

Shares of the company jumped over 11 percent on the news and into extended trading after the internet and technology company posted second quarter (adjusted) earnings of $6.99 per share and $17.73 billion in revenue. Sales rose from $15.95 billion. Analysts expected earnings of $6.70 per share (A class) and $6.74 per Class C share. They expected $17.75 billion in revenue.

This is good news for Google as investors have been watching advertising metrics and how much the company spends relative to the company’s growth. The aggregate cost per click, what companies pay to advertise, fell 11 percent on an annual basis. However aggregate paid clicks surged higher by 18 percent, offsetting the loss in cost per click revenue.

According to incoming chief financial officer (CFO) Ruth Porat, a former Morgan Stanley executive, who wanted to bring financial discipline to the tech giant, this is a first. She is succeeding on accelerating efforts to return more money to shareholders.

In an interview with the Wall Street Journal, she said that “our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising,” Porat said in a statement Thursday.

Google’s revenue jumped 11 percent. Slightly below expectations. The company blamed a strong US Dollar noting that sales would have grown 18 percent should the currency remained stable. Operating expenses, as a percentage of revenue rose from 35 to 36 percent. Traffic acquisition costs fell to 21 percent of advertising. This was down from 23 percent.

Shares of Google, the Class A shares, are up over 13 percent this year to date. This beats the gain of more than eight percent the Nasdaq Composite has shown.