Google Profit Rises, But Misses Estimates

(RTTNews) - Search engine giant Google Inc (GOOG, GOOGL) on Thursday reported first-quarter net earnings of $3.59 billion or $5.20 per share compared with $3.45 billion or $5.04 per share last year.

Excluding items, adjusted earnings for the quarter were $6.57 per share compared with $6.27 per share a year ago.

On average, 42 analysts polled by Thomson Reuters estimated earnings of $6.60 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 12 percent to $17.26 billion from $15.42 billion in the prior year.

Thirty-two analysts had a consensus revenue estimate of $17.50 billion for the quarter.

Traffic acquisition costs for the quarter totaled $3.35 billion compared with $3.23 billion last year, Google said.

The company's operating margin for the quarter fell to 26 percent from 27 percent a year ago.

"We continue to see great momentum in our mobile advertising business and opportunities with brand advertisers," said CFO Patrick Pichette.