Google Climb Put on Hold

But the $1.21 figure came from Thomson First Call. According to Thomson's Web site, analysts were looking for a GAAP profit of $1.09 a share and a pro forma profit of $1.21. Factoring in stock options, Google posted a profit of $1.36 a share. Thomson didn't return a call seeking to confirm its numbers.

For its second quarter ended June 30, the Mountain View, Calif., company earned $342 million, or $1.19 a diluted share, on a GAAP basis, up from the year-ago $79 million, or 30 cents a share.

Google said total revenue rose 98% to a record $1.38 billion in the quarter. Net revenue, or revenue excluding the fees from search-engine advertising partners, rose to $890 million, up from $423 million a year ago. Analysts were looking for net revenue of $842.7 million.

Google's revenue grew at slightly faster rates in the second quarter than in the first. Total revenue grew 93% in the first quarter and net revenue grew 109%. The amount of revenue Google shares with its search partners also declined to 35.7% of total revenue, compared with 36.8% in the previous quarter.

In the call, Schmidt hinted that the company is seeing no overall slowdown in search-keyword prices, despite some anecdotal signs to the contrary. "You can always find one keyword where the pricing is correct and another that is underpriced," he said.

"But if you look at universe of keywords, it appears to us correct to say there's significant room for a combination of more advertisers and more demand to cause the prices to rise, which is obviously good for Google," Schmidt said. "There's no evidence now at least in the aggregate that we have topped in any major categories of market."

Schmidt also indicated that some of the more promising new products, such as Gmail and local advertising tailored to Google's popular online maps, will become cash cows. "With adoption rates of Gmail and local search -- which is a huge market -- these should become very, very large drivers of revenue for Google, but they are not today," he said.