Google shares rise after online ad sales drive revenue higher
By Lisa Richwine
(Reuters) - Google Inc reported higher quarterly revenue and profit as rising online ad volume offset a hit from the strong dollar, sending the Internet company's shares higher in after-hours trading.
Shares of the world's No. 1 Internet search engine rose after the results were released, climbing 3.5 percent on Thursday to $577.
While revenue and profit missed the forecasts of Wall Street analysts, many investors had been bracing for a weaker report, said BGC Financial analyst Colin Gillis.
The company has faced challenges in mobile advertising and is running up more expenses as it invests in new businesses.
"The concern was that the first quarter results could have been much worse," Gillis said. "There's a certain degree of relief rally happening."
Revenue for the quarter that ended in March rose 12 percent to $17.26 billion, from $15.42 billion a year earlier. Analysts on average had expected revenue of $17.5 billion, according to Thomson Reuters I/B/E/S.
The rising dollar took a toll on results at Google, which generates about half of its revenue overseas.
"Excluding the net impact of foreign currency headwinds, revenue grew a healthy 17 percent year on year,” Google Chief Financial Officer Patrick Pichette said in a statement. Continued...