Today, I formally begin covering Google earnings, as I have done for Microsoft (a decade) and Apple (about six years). This first report won't be as thorough as the others, as I get my head around the financials, which share little in common with APPL and MSFT other than money. Today's earnings announcement is refreshing respite from third quarter's, when an incomplete press release pushed out early and while the market was open.
For calendar fourth quarter, revenue rose 36 percent to $14.42 billion, year over year; net revenue, excluding Traffic Acquisition Costs, was $9.83 billion, up from $8.13 billion. Net income climbed to $2.89 billion up from $2.71 billion. That's $8.62 earnings per share, including costs associated with discontinued operations. Operating income was $3.39 billion, down from $3.51 billion year over year.
Average analyst consensus was $12.36 billion revenue and $10.52 earnings per share, for the quarter. Revenue estimates ranged from $11.74 billion to $12.72 billion, with estimated year-over-year growth of 52 percent.
Advertising accounted for 94 percent of Google revenue, down from 96 percent a year earlier.
For the year, Google revenue reached $50.18 billion, up 32 percent from $37.9 billion. Motorola contributed $4.14 billion. Net income: $10.74 billion or $32.81 earnings per share. Average analyst consensus was $41.41 billion revenue and $39.73 EPS.
Following the announcement, and while the earnings call was still underway, Google shares rose nearly 5 percent in after-hours trading. Shares closed at $702.87 but traded at $736.75 at 5:32 PM EST. At 6:18 PM, increase topped 5 percent, with Google trading at $738.39.
