Google Quarterly Earnings Disappoint, but Shares Rise
The leader in Internet search posted a whopping $17.3 billion in revenue during the first quarter, but analysts expected more.
Google reported Wednesday its net income rose to $6.57 per share, excluding certain items in the first quarter, compared with $6.27 in the same frame a year ago, as revenue climbed 12 percent to $17.3 billion.
While the leader in Internet search missed Wall Street's expectations on both the top and bottom lines, the stock was up more than 3 percent in after-hours trading.
The company blamed lackluster results on currency-exchange rates and said that without the negative impact of currency, it would have grown its revenue by 17 percent.
Google said total advertising revenue rose 11 percent to $15.5 billion, while all other revenue was up 23 percent to $1.8 billion.
Google said that while it saw a 13 percent gain in aggregate paid clicks, the average price for its ads, known as cost-per-clicks, fell 7 percent in the first quarter compared to a year ago.
Shares of Google rose 1 percent to $547 during regular trading and were up more than $13 per share after the closing bell.