Google’s Profits Jump 17%, Earnings Miss
Larry Page the CEO at Google announced on Thursday that the Internet search giant ended 2013 with an increase of 17% in profits. The company said earnings had been $12.01 per share on revenue that was $16.68 billion.
Net income for the period was $3.38 billion. Analysts estimated that earnings would be $12.21 per share and revenue $16.71 billion. In afterhours trading on Thursday Google stock was unchanged.
Shares at Google have grown for months, up 24% since the report of its earnings was reported last October. Google also has a strong trading day prior to its earnings report, as it was up 2% to more than $1,135 a share.
Much of the rise in stock shares was attributed to the announcement of Google selling Motorola Mobility to the computer maker Lenovo, while maintaining most of the pioneering smartphone maker’s patent portfolio.
In 2011, Google more than $12.5 billion for Motorola Mobility and sold it for just less than $3 billion. The company saw revenues fall from the same quarter in 2012 from $1.51 billion to $1.24 billion.
Google has acquired a number of companies over a period of months, buying Nest, along with a number of robotics companies, which has stirred speculation over products the company could have in its pipeline.
In a post about the sale of Motorola Mobility, CEO Page said the company would be making home gadgets and wearable technology.
Since Page took over in 2011 as the CEO, he has pushed employees to take on projects of their own, but has never worried about cutting the ones that are not working.
One analyst said that by selling Motorola, Google was able to remove a headwind and give out a positive indication the company might be willing to act quickly to move away from mistakes, even those that are costly such as the deal with Motorola.
The rate the company has of cost per click, which is what it charges advertisers when users click on their ad, has continued a downward slide and was down by 11% from the same quarter one year ago.
Overall, the total number of clicks was up by 31% from 2012.