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Google astounds analysts as stock keeps climbing

Ever since its initial public offering (IPO) of stock eight months ago, Google has been churning out profits that have astounded even the most bullish analysts and propelled its already high-flying stock to new heights.

The Mountain View-based company provided yet another boost on Thursday, announcing earnings of US$369.2 million, or US$1.29 per share, for the three months ended in March. That compared with net income of US$64 million, or US$0.24 per share, at the same time last year.

Revenue totaled US$1.26 billion, nearly doubling from US$651.6 million at the same time last year. After subtracting commissions that Google paid to other Web sites in its advertising network, the company's first-quarter revenue was US$794.5 million.

If not for a charge to account for stock options that Google awarded its workers before going public, the company's earnings would have ranged between US$1.39 to US$1.46 per share.

Google's profit wouldn't have been quite as impressive without an abnormally low effective tax rate of 19 percent during the quarter. Caris & Co analyst David Garrity estimated Google would have earned US$1.12 per share if the company's tax rate had been at a more normal 30 percent.

By any measure, Google's earnings easily topped the US$0.92 per share forecast by analysts in a Thomson Financial survey.

"The quarter was nothing short of phenomenal," Garrity said. "These guys are really in a sweet spot in their industry."

Google's earnings have soared beyond analyst estimates in all three quarters since the company completed its much-anticipated IPO at US$85 per share in August.

The IPO generated the most investor excitement since the dot-com boom, amplifying the pressure on Google to continue the rapid financial growth that helped make it a hot commodity in the first place.
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