New Google CFO 'Raises Expectations For Change'

Google Inc GOOGL's appointment Tuesday of Ruth Porat to the role of chief financial officer is unlikely to change Street estimates for the company, an analyst said. Google closed up more than 2 percent to $577.54. Morgan Stanley's Benjamin Swinburne said he's "positive on the news, but we'll wait and see if tangible changes occur." Porat currently serves as chief financial officer at Swinburne's employer. She joined Morgan Stanley 28 years ago, leaving for a three-year spell at Smith Barney starting in 1993. Porat's background "will only raise the expectations for change" at Google, Swinburne said. Google investors want greater detail on the company's revenue and on its sometimes outlandish capital spending, according to Swinburne. Wall Street would also relish dividends and stock buybacks, which Swinburne said "would be a major sea-change" for Google. Porat's focus with analysts and investors at Morgan Stanley was "on setting clear targets and providing transparency on key areas of interest," according to Swinburne. "We're encouraged by the hire," Swinburne said. But as for higher earnings estimates, the analyst noted that 57 percent of Google's revenue stems from international sources, while the dollar has strengthened recently against other currencies.