“Google delivered quarterly earnings and revenue that fell short of analysts’ expectations on Wednesday, as ad pricing continued to weaken,” Karma Allen reports for CNBC. “Shares dropped sharply.”
“The company posted first-quarter earnings excluding items of $6.27 per share, up from $6 a share in the year-earlier period. Revenue increased by 19 percent to $15.42 billion from $12.95 billion a year ago,” Allen reports. “Analysts had expected the company to report earnings excluding items of $6.40 a share on $15.52 billion in revenue, according to a consensus estimate from Thomson Reuters.”
Allen reports, “After the earnings announcement, the company’s shares fell more than 6 percent in after-hours trading.”
Read more in the full article here.
“The number of ‘paid clicks’ by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts that had hoped for stronger volume growth,” Alexei Oreskovic reports for Reuters. “And the average ‘cost per click’ declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business.”
“Operating income slipped to 32 percent of revenue on an adjusted basis, from 34 percent in the year-ago period,” Oreskovic reports. “It posted $3.45 billion in net income, or $5.04 per share, in the three months ended March 31, compared to $3.35 billion, or $4.97 per share, in the year-ago period.”
“Google reported a $198 million net loss from ‘discontinued operations,’ which includes the Motorola smartphone business,” Oreskovic reports. “Google announced plans in January to sell the money-losing business to China’s Lenovo Group for $2.91 billion.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Scott M.” for the heads up.]
