Google Inc. said Thursday that second-quarter profit more than doubled as it took market share from Yahoo Inc. and Microsoft Corp.
The Mountain View, Calif.-based company posted net income of $721.1 million, or $2.33 a share, up from $342.8 million, or $1.19 a share, a year earlier. Revenue surged 77 percent, to $2.46 billion. Excluding stock options costs, Google earned $2.49 a share, beating estimates by 27 cents a share.
Unlike Yahoo, which this week reported sales that missed analysts’ estimates, Google beat expectations there too.
“These numbers showcase that Google is predominant in the areas where they’re playing,” said Rob Enderle, an analyst at Enderle Group. “Yahoo’s numbers indicated they were being hit by Google. This confirms that.”
Google’s global share of Internet searches rose to 62 percent in May from 55 percent a year ago, according to ComScore Networks Inc., a Reston, Va.-based company that tracks Web use. Yahoo’s share fell to 20 percent from 22 percent, while Microsoft’s share fell to 9 percent from 10 percent.
Shares of Google closed at $387.12, down $11.88, or 2.98 percent, on Nasdaq.
In other earnings news:
– Microsoft Corp. said fourth-quarter profit fell 23 percent after it spent more on its Xbox video-game console and announced plans to buy back $40 billion in stock.
The Redmond, Wash.-based software giant posted net income of $2.83 billion, or 28 cents a share, down from $3.7 billion, or 34 cents a share, a year ago. Excluding one-time items, Microsoft would have earned 31 cents a share, beating estimates by 1 cent a share.
Sales rose 16 percent, to $11.8 billion. Sales in the home and entertainment division, largely made up of Xbox, more than doubled, to $1.22 billion, according to Rick Sherlund, an analyst at Goldman, Sachs & Co.
Microsoft accelerated investments to get more Xbox consoles to market and catch up to Google in software programs that run over the Web.
“Chasing Google is a waste of money,” said Walter Price, who manages the Allianz RCM Global Technology Fund in San Francisco.
Shares of Microsoft closed at $22.85, down 55 cents, or 2.35 percent, on Nasdaq.
– Continental Airlines Inc. said second-quarter net income almost doubled, to $198 million, or $1.84 a share, its most profitable quarter since at least 1993, according to Bloomberg News. A year ago, the Houston-based carrier earned $100 million, or $1.26 a share. Excluding items, Continental would have earned $1.93 a share, 3 cents a share higher than estimates. Revenue rose 22.8 percent, to $3.51 billion.
Continental stock lost $1.36, to $29.20, on the New York Stock Exchange.
– Pfizer Inc. posted a 30 percent drop in second-quarter net income, to $2.42 billion, or 33 cents a share, from $3.46 billion, or 47 cents a share, a year ago, when the New York-based pharmaceutical giant had tax benefits of $1.04 billion. Excluding one-time items, Pfizer would have earned 50 cents a share, beating estimates by 2 cents a share. Revenue edged up 3 percent, to $11.74 billion.
Pfizer stock added 41 cents, to $23.71, on the NYSE.
