Google shares rise after-hours following fourth quarter earnings report
Google doesn't make a red cent (or any other color cent for that matter) directly from the use of its Android open source OS. But the more Android phones that sell, the higher number of people using Google Services. And that means more advertising revenue for the company. While the number of ad clicks increased 14% year-over-year, the average price of its online ads declined 3% during the same period. Google also was negatively impacted by the stronger dollar. With half of its business coming from overseas, Google received fewer dollars when converting its foreign revenue and income into good 'ol Yankee dollars.
Google's net income was $4.76 billion ($6.91 per share) for the fourth quarter. Adjusted EPS came to $6.88, lower than the $7.11 expected by Wall Street. Last year Google earned $3.38 billion ($4.95 per share) for the quarter. Google's CFO said that the company had trouble producing enough Nexus 6 handsets (CFO Patrick Pichette accidentally referred to the handset as the Nexus 7) to meet demand, which was a negative factor for the quarter.
Google's shares are currently trading at $517.17, up $6.51 from Thursday's closing price of $510.66.