Google Quarterly Earnings Disappoint But Shares Rise

Google campus
Ole Spata/DPA/Landov 

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 the 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.

This article was first published by The Hollywood Reporter.


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