Google shares fell more than 3.5% in after-hours trading, but regained loss on Thursday to 509.21.
Wall Street expectations for Google gave earnings of $7.11 per share on revenue of $18.46 billion, according to a consensus estimate from Thomson Reuters.
Actual fourth quarter adjusted earnings came in at $6.88 per share, up from $6.00 a share in the fourth quarter 2013. Revenue rose to $18.1 billion from $16.86 billion a year ago.
Downbeat quarterly earnings demonstrate the shortage of search revenues as Apps take over on mobile searches, and Google reported only 11% gains on paid clicks in the last quarter of 2014, and the average cost per click falling by 3%.
Like many other U.S companies, Google also cited the strong US dollar working against exports as a weight on revenues to the tune of $600 million – before foreign exchange adjustments growth was steady at 18%.
Google revealed a list of other items in their product line that also affected earnings in the fourth quarter, such as Google Glass failing to meet internal targets resulting in a management restructure as opposed to previous reports of imminent commercialization. Additionally, a parts shortage for the Nexus 6 smartphone stalled production and postponed targets. However, the Motorola spin off helped to push net income for the fourth quarter up 41% to $4.76 billion even though Google’s operating margin fell to 31% from 34% a year ago due to expenses for an additional 2,000 staff.
Google’s overall loss on the markets has been 9% over the past 12 months compared to a 13% gain on its home exchange USTECH100 (Nasdaq).
MT4 chart: Google
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