Google shares rise after-hours following fourth quarter earnings report

Google shares rise after-hours following fourth quarter earnings report
After initially declining 3% after reporting fourth quarter earnings, Google's shares have reversed and are now trading up 1.44% after hours. Revenue increased 15% during the October-December period. But the actual amount of revenue received by Google during the fourth quarter fell short of Wall Street estimates. The abacus sporting pencil pushers were looking for the company to take in $18.46 billion and the actual figure was $18.10 billion.

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.

source: Reuters

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20 Comments

1. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I could've sworn that Google did charge a license fee when OEMS include their suite of services, including the Playstore.

4. andynaija

Posts: 1252; Member since: Sep 08, 2012

Yeah, I think I've read about the same thing sometime ago. It was in an article on PA about Android and how manufacturers could choose between different versions like a forked version, pure Android, etc.

13. vincelongman

Posts: 5628; Member since: Feb 10, 2013

The Guardian claimed that Google charge $0.4-$0.75 per a device for Google Mobile Serviceshttp://www.theguardian.com/technology/2014/jan/23/how-google-controls-androids-open-source Google claim they don't charge for their Google Mobile Services No OEMs have said anything about charges The Guardian has since dropped their claim, posting "The original article was taken down pending investigation, on 28 January 2014. The article was launched in error before editorial processes had been completed and contained errors for which we apologise. The story said that Google charges Android device makers a license fee for Google mobile applications. This is wrong. In addition the article stated in reference to a licence fee that: "It is a lot of money, but you can't see it anywhere [in Google's accounts]." This is also incorrect."

15. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

It does and it does not, that's why you get the mixed reports. Let me explain it further: - Google doesn't charge a cent for Android AOSP (the core of Android) - Google does not charge a cent for their suite services - Google does charge around $0.70 per unit cents for the certification process for theis suite services. That's why you get the confussion, depends how you interpret it they DO charege or they DON'T. ;)

16. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I understand, but technically, they are charging when someone wants to use Google's services, including the Playstore. Whether they're charging for the certification or the services themselves, the end result is the same. Using Google services will cost money to have them on your device.

19. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Then there you have your answer ;) All my point was it can be interpreted, so that's why depending on who you ask you get a yes or a no.

2. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

So great to see Google doing well. Maybe they can celebrate by releasing more nexus devices for us!

3. TimCook

Posts: 450; Member since: Oct 23, 2014

I think Google is doing great, Their business model is great and open source works.. Just look at Apple how much careful they have to be with their products in order for them to sell, imagine what would happen if Apple didn't have the best apps, or fast app releases, or exclusive games, imagine what would happen if they had crappy services like Google wallet instead of Apple pay..., imagine if they had laggy software.. Nobody would buy them.. I remeber for the first 5 years Android was laggy, choppy and with no apps and still was in 50% of the phones..., Communism vs Capitalism...

6. Scott93274

Posts: 6025; Member since: Aug 06, 2013

I think Apple is doing awesome as well, Even though their security of sub par, and always getting hacked like the celebrity photo scandal of iCloud, or the hijacking of Apple accounts in Australia and then the users being forced to pay money to gain access to their own data again. Or their iMessanger app that Phone Arena refers to as a black hole that sucks in texts, never to be seen again for those who switch platforms. Microsoft, Blackberry, and Android don't have those issues. Yet people are still willing to pay more for less with Apple.

7. wilsong17 unregistered

Mr Co k what is apple doing with all that money thought.... at least google is investing in the future

9. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple is the modern days Scrooge McDuck. I really love the cantoon.

10. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Oh! Your comment really took me back to my childhood! Though personally, I would have gone with Montgomery Burns.

12. wilsong17 unregistered

Smithers ¥ !fans

14. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Excellent choice!

17. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

That's an interesting parallel. Montgomery Burns is Steve Jobs, and Smithers is Tim Cook.

8. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

You guys having a Sarcasm contest? LOL!

11. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Crap! It's a contest now? I better step up my game!

18. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Wow, so Android is communist and Apple is capitalist? I'm thinking you need to take a break from the internet and get outside a bit. Just because you're not charging as much as humanly possible for something doesn't mean you're giving it away.

5. ggudino

Posts: 12; Member since: Aug 25, 2012

I wish that you could delete comments instead of just being allowed to edit them..sigh!

20. PBXtech

Posts: 1032; Member since: Oct 21, 2013

"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." Misleading statement, it paints a picture that Google doesn't make any money from Android. The reality is far from that. While the core OS is free, they get tons of money from app purchases, Google Music, and other services they provide. It's not just add clicks that brings in the money for Google.

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