Google Busting Out

The company posts a stronger-than-expected third quarter, including adjusted EPS of 70 cents.
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Updated from 4:45 p.m.

Google

(GOOG) - Get Report

surged 8% late Thursday after posting a strong third quarter in its first report as a public company.

For its third quarter ended Sept. 30, the Mountain View, Calif., search-engine company earned $52 million, or 19 cents a share. That's up from the year-ago $20 million, or 8 cents a share.

Excluding all items in the quarter -- the costs of settling a lawsuit with rival

Yahoo!

(YHOO)

, an associated tax benefit and the effect of stock-based compensation -- earnings were $193 million, or 70 cents a share. That puts Google comfortably ahead of the Thomson First Call estimate, which called for earnings of 56 cents a share.

Revenue more than doubled, hitting $806 million, up from the year-ago $394 million. Revenue rose 15% sequentially, reflecting "strong traffic and monetization growth in the quarter as well as advertisers' growing recognition of the Internet as an effective advertising medium," Google said.

Excluding so-called traffic acquisition costs, or the fees Google pays its Web partners, latest-quarter revenue was $503 million. That's well ahead of the $454 million Thomson First Call analyst consensus estimate. Sequential revenue growth on this basis was 19%. Analysts had expected to see single-digit sequential growth.

"We are very pleased with the results of this quarter. Record revenues, robust margins and cash generation all illustrated strong performance and execution over the last quarter," said CEO Eric Schmidt. "Our commitment to users and to the development of quality products and services for them clearly translated into robust financial results. That dedication to our users, combined with our relentless technology innovation and market opportunity make us very optimistic about our company's future."

In regular trading Thursday, Google's buoyant shares rose $8.89 to $149.38. They jumped to $161 in the postclose session.

The shares have risen some 70% since their Aug. 19 initial public offering at $85.