Google Inc. on Thursday reported a 46 percent increase in third-quarter profit and beat Wall Street estimates by 13 cents a share.
The Mountain View, Calif.-based company said it had net income of $1.07 billion, or $3.38 a share, up from $733.4 million, or $2.36 a share, a year ago. If not for the cost of awarding stock to its steadily expanding workforce, Google would have earned $3.91 a share. On that basis, analysts expected $3.78 a share, according to Thomson Financial.
Revenue climbed 57 percent, to $4.23 billion. Google has reported sales growth of more than 50 percent in all of its 13 quarters as a public company. After subtracting commissions paid to its thousands of advertising partners, Google’s revenue was $3.01 billion.
The report came out after the close of trading.
In other earnings news:
– Bank of America Corp. reported a 32 percent drop in third-quarter earnings as trading losses and write-downs on a wide variety of loans offset solid revenue growth.
The Charlotte-based bank said net income declined to $3.7 billion, or 82 cents a share, from $5.42 billion, or $1.18 a share, a year ago. Wall Street expected earnings of $1.06 a share for the latest period, according to Thomson Financial. Revenue fell 12 percent, to $16.3 billion.
The bank said it had set aside $2.03 billion for credit losses, up more than 73 percent from a year earlier, and had a $527 million loss related to structured products, including asset- and residential mortgage-backed securities and collateralized debt obligations. It also wrote down $247 million for leveraged loans and other financing commitments.
Shares of Bank of America sank $1.18, to $48.85, on the New York Stock Exchange.
– Pfizer Inc., the world’s largest pharmaceutical company, said third-quarter profit plunged 77 percent because of a $2.8 billion pretax charge to end investment in the inhaled insulin drug Exubera and lower sales of cholesterol drug Lipitor.
The New York-based firm earned $761 million, or 11 cents a share, down from $3.36 billion, or 46 cents a share, a year ago. Excluding one-time charges, Pfizer would have earned 58 cents a share. On that basis, analysts expected 52 cents a share.
Revenue fell 2 percent, to $11.99 billion. Sales of Lipitor, the world’s best-selling drug, dipped 5 percent, to $3.17 billion. Sales of the anti-depressant Zoloft plummeted 73 percent, to $124 million, while sales of blood pressure drug Norvasc slid 47 percent, to $640 million.
Pfizer stock shed 1 cent, to $24.54, on the NYSE.
– Southwest Airlines Co. said third-quarter profit more than tripled, to $162 million, or 22 cents a share, compared with $48 million, or 6 cents a share, during the same period a year earlier. Wall Street was expecting 21 cents a share.
Revenue increased nearly 11 percent, to $2.59 billion. The Dallas-based discount airline said its load factor, which measures how many seats are filled by paying customers, rose to a record 76.6 percent.
Southwest stock lost 23 cents, to $14.33, on the NYSE.
– Continental Airlines Inc. said third-quarter earnings rose about 2 percent, to $241 million, or $2.15 a share, from $237 million, or $2.17 a share, a year ago. The Houston-based carrier had a slightly larger share count in the most recent quarter, which is why per-share earnings fell even as profits rose. The most recent figure fell 2 cents a share below estimates. Revenue rose almost 9 percent, to $3.82 billion.
Shares of Continental fell $1.30, to $34.93, on the NYSE.
