Jan. 31 (Bloomberg) -- Google Inc., owner of the most-used Internet search engine, may say fourth-quarter earnings surged as the company extended its lead in Web queries and sold more advertising outside the U.S.

Profit probably rose to $2.90 a share, excluding some costs, from $1.54 a year earlier, according to the average of 27 analysts' estimates compiled by Bloomberg. Sales may have risen 70 percent to $2.19 billion, not counting revenue passed on to partner sites.

Google dominates the Internet search business. The Mountain View, California-based company controls more than 70 percent of the market in France, Germany and the U.K., according to ComScore Networks Inc., which tracks Web use. Its U.S. share grew to 47 percent in the fourth quarter from 40 percent, while Yahoo! Inc.'s share fell.

``Every month they've been eking out a little bit more market share,'' said Youssef Squali, an analyst at Jefferies & Co. in New York who received StarMine Corp.'s top ranking for the accuracy of his estimates for Internet companies. He rates Google ``buy'' and doesn't own the stock.

The company will report its earnings today after U.S. markets close. Spokesman Jon Murchinson declined to comment for this story.

Shares Gain

Google shares rose 15 percent in the fourth quarter and topped $500 for the first time in November. At least five analysts, including Piper Jaffray & Co.'s Safa Rashtchy and Credit Suisse's Heath Terry, expect the shares to reach $600.

Thirty-three analysts recommend buying Google shares, four say hold them and one, Guzman & Co.'s Jake Balzer, has a ``sell'' rating, according to data compiled by Bloomberg.

The stock gained $2.22 to $496.54 at 9:40 a.m. New York time in Nasdaq Stock Market trading and has advanced more than fivefold since being sold to the public at $85 in August 2004.

Internet advertising industrywide is picking up. Bill Wise, chief executive officer at ad agency Did-It Search Marketing, said his clients' spending on Web search ads rose 30 percent in the fourth quarter from the third.

``The fourth quarter we saw was incredibly strong,'' said Wise, whose Rockville Center, New York-based company buys more than $100 million in search ads a year for companies including Cingular Wireless and Dun & Bradstreet.

Rivals Stumble

Yahoo, based in Sunnyvale, California, had 28 percent of the U.S. search market in the quarter, down from 29 percent a year earlier, and Microsoft Corp.'s share fell to 11 percent from 14 percent, Reston, Virginia-based ComScore said.

To expand in video ads and social networking, Google bought YouTube Inc. for $1.65 billion in November. YouTube receives more than 65,000 video clips a day from users.

Google's international sales probably rose 87 percent, compared with U.S. growth of 48 percent, Goldman, Sachs & Co.'s Anthony Noto wrote in a Jan. 15 note.

``They have very strong positions in most of the European markets,'' said Morris Mark, president of Mark Asset Management in New York. He manages more than $500 million including Google shares. ``People are underestimating the probable impact this may have on the level of profitability.''

To contact the reporter on this story: Jonathan Thaw in San Francisco at jthaw@bloomberg.net

Last Updated: January 31, 2007 09:42 EST