Join        Login             Stock Quote

Google (GOOG) 4Q Earnings Up 6.6 Pct, Beat Estimates; Shares Rise

 January 22, 2013 04:34 PM

(By Balaseshan) Search engine giant Google Inc. (NASDAQ: GOOG) reported a 6.6 percent rise in quarterly earnings on a 36 percent revenue growth and greater momentum in products like Android, Chrome and YouTube. Results exceeded consensus, sending shares up 4 percent in aftermarket.

Google, which has been struggling to turn around its Motorola acquisition, has agreed with Arris Group, Inc. and certain other persons to dispose the Motorola Home business for about $2.35 billion in cash and stock. The transaction is expected to close in 2013. As a result, results related to the Home business are presented as net loss from discontinued operations.

[Related -Google Inc (GOOG) Q4 Earnings Preview: What To Watch?]

Profit increased 6.6 percent to $2.89 billion, while earnings per share (EPS) rose 4.9 percent to $8.62. Adjusted earnings grew to $3.57 billion, or $10.65 per share, from $3.13 billion, or $9.50 per share.

Revenue climbed 36 percent to $14.42 billion. Traffic acquisition costs, the portion of revenues shared with Google's partners, increased to $3.08 billion from $2.45 billion.

Analysts, on average, polled by Thomson Reuters had expected a profit of $10.52 per share on revenue of $12.36 billion for the fourth quarter.

Excluding gains related to foreign exchange risk management program, total revenue in the latest quarter would have been $193 million higher.

Motorola revenues were $1.51 billion, or 11 percent of consolidated revenues in the fourth quarter of 2012.

[Related -Boost Your Dividend Yield]

Google-owned sites generated revenue grew 18 percent to $8.64 billion, while Google's partner sites revenue increased 19 percent to $3.44 billion. Revenues from outside of the United States totaled $6.9 billion, representing 54 percent of total revenue in the latest quarter.

Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of network members, increased about 24 percent, while average cost-per-click, which includes clicks related to ads served on Google sites and the sites of network members, decreased about 6 percent.

Total costs and expenses increased to $11.03 billion from $7.08 billion. Google's cost of revenue rose to $4.96 billion from $3.70 billion, while Motorola's cost of revenue was $1.25 billion for the latest quarter.

On a worldwide basis, Google employed 53,861 full-time employees (37,544 in the Google business, 11,113 in its Motorola Mobile and 5,204 in its Motorola Home businesses) as of December 31, 2012, compared with 53,546 full-time employees as of September 30, 2012.

Meanwhile, software major Microsoft Corp. (NASDAQ: MSFT) is set to release its second quarter results after the market closes Thursday. Street analysts are expecting Microsoft to earn $0.75 per share on revenue of $21.56 billion. In comparison, last year's reported earnings were $0.78 on revenue of $20.88 billion.

GOOG closed Tuesday's regular session down 0.23 percent at $702.87. The stock has been trading between $556.52 and $774.38 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.