Google (NASDAQ:GOOGL) reported earnings after the bell on Thursday. For the quarter ending in March, revenue came in at $17.3 billion and adjusted earnings per share were $6.57.
Continue Reading Below
Analysts polled by Thomson Reuters had been predicting $17.5 billion in revenue and an adjusted EPS of $6.60. Revenue was 12% higher than the $15.4 billion in the same period last year.
Even though Google's numbers fell short of estimates, things could have been worse. "People are probably encouraged by the fact that frankly the company did not have a lot of surprise seemingly in its release." said Scott Kessler, analyst, at S&P Capital IQ on Fox Business Network's After the Bell.
Operating expenses were also higher at $6.5 billion, compared to Street estimates of $6.3 billion.
Google pointed to its revenue “excluding the net impact of foreign currency headwinds,” stating that revenue grew “a healthy 17% year on year” without it, according to Patrick Pichette, the outgoing CFO. “We continue to see great momentum in our mobile advertising business and opportunities with brand advertisers,” he added.
Google is bringing in a new CFO this upcoming quarter, Ruth Porat. She previously served as the chief financial officer for Morgan Stanley (NYSE:MS).
Google shares have gained 2.4% this year and Kessler sees the "valuation as very, very attractive."