Google Inc. Sets Record Highs After Hours
In reaction to a roughly in-line fourth-quarter report, Google shares traded more than 4% higher after the closing bell. The stock set new 52-week and all-time highs in the process.
The online search and advertising giant reported fourth-quarter revenue of $16.9 billion, a 17% year-over-year jump, and just above analyst expectations. Non-GAAP earnings surged 13% higher, landing at $12.01 per share. Analysts were looking for $12.26. The company is not in the habit of providing forward guidance of any kind.
The Motorola Mobile segment saw revenues falling 18% year over year. Operating losses in this division more than doubled, to $384 million, or roughly $1.13 per share on an EBIT basis. Motorola's handset operations are being sold to Chinese hardware specialist Lenovo for $2.9 billion, relieving Google of these operating losses in future reporting periods. The company did not elect to classify Motorola Mobility as discontinued operations in this fourth-quarter report.
Revenue collected from Google-owned sites jumped 22% year over year and accounted for two-thirds of total revenues. The volume of paid clicks increased 31% from the year-ago period, moderated by 11% lower cost per click.
In other news, Google's board of directors approved the plan to issue a third class of Google shares to existing Class A and Class B shareholders. One new Class C share will be issued for each Class A or B stub on April 2, to shareholders of record as of March 27. The new shares will adopt the old GOOG ticker, while Class A shares move to a new GOOGL ticker. The super-voting Class B shares will remain unlisted, as before.
The article Google Inc. Sets Record Highs After Hours originally appeared on Fool.com.Anders Bylund owns shares of Google. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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