Google Inc. missed Wall Street’s profit estimates in its second quarter, as rising operating expenses offset a 24 percent jump in the Internet search giant’s revenue.
Shares of Google fell 4.1 percent after its earnings report Thursday afternoon.Google, the world’s No. 1 search engine, posted net income of $1.84 billion, or $5.71 a share, in the second quarter, up from $1.48 billion, or $4.66 a share, a year earlier.
Excluding certain items, Google’s EPS was $6.45, below the average analyst estimate of $6.52, according to Thomson Reuters I/B/E/S.
“Operating expenses overall were higher than we had estimated, which dragged down the earnings per share,” said ThinkEquity analyst Aaron Kessler.
Google, which has made a string of acquistions in recent months, added more than 1,100 employees in the second quarter.
Google said its revenue in the three months ended June 30 totaled $6.82 billion, up from $5.52 billion a year earlier.
Net revenue, which excludes costs that Google shares with Web site partners, was $5.09 billion, topping the $4.98 billion expected by analysts polled by Thomson Reuters I/B/E/S.
Shares in Google fell to $473.55 after closing at $494.02 on Nasdaq.
Google’s stock is down roughly 22 percent from its 52-week high of $629.51, though shares have risen more than 13 percent from an intraday low of $433.63 earlier this month.
