Google Inc. has reported a strong fourth quarter, boasting $10 billion in net earnings, as lessened expectations from analysts allowed the company to excel.
With its shares up more than 6 percent this morning, the reaction from Google’s excellent fourth quarter is overwhelmingly positive, as the world’s largest internet search engine company introduced a slew of new products during the quarter.
Google also grew its international presence, with many people favoring phones utilizing its Android platform.
Excluding traffic-acquisition costs, the business generated net revenue of $9.83 billion, up from $8.13 billion a year earlier.
Wall Street on average predicted a $9.6 billion quarter for Google.
“Business looked really strong, especially from a profitability perspective. They really grew their margins in the core business,” said Sameet Sinha, an analyst with B. Riley Caris.
“Most of that strength seems to be coming from international markets which grew revenues quite substantially: up 23 percent year over year, versus the 15 percent growth in the third quarter.”
Average cost-per-click, the price advertisers pay per click on an ad, declined 6 percent from a year ago. Despite being the fifth consecutive quarter of decline, it wasn’t as steep of a decline as the Street expected.
“Click prices are still declining, but it’s better than expected,” said BGC Partners analyst Colin Gillis.
Consolidated net income in the fourth quarter was $2.89 billion or $8.62 per share, compared with $2.71 billion, or $8.22 per share, a year ago.
James Gilbert | Elite.