SAN FRANCISCO (AP) – After years of big spending on risky projects that CEO Larry Page proudly hails as “moonshots,” Google may be launching into a new orbit of financial discipline.
Investor hopes for a more austere Google are largely tied to the arrival of a new chief financial officer, Ruth Porat. She joined Google in late May, about two-thirds of the way through the Internet company’s second quarter. Thursday’s release of Google’s report covering that period indicates that Porat already may be shaking things up.
Excluding stock compensation expense and several other items, Google earned $6.99 per share – topping the average estimate of $6.70 per share among analysts surveyed by FactSet.
The pleasant surprise ended a streak of six consecutive quarters in which Google’s earnings missed the analyst estimates that steer investors’ perceptions about publicly held companies. Investors welcomed the change as Google’s stock gained $43.90, or 7 percent, to $645.68 in extended trading after the numbers came out.
“It’s like, ‘Wow, look Ruth is already doing her thing,'” said BGC Financial analyst Colin Gillis.