World Bulletin / News Desk
Google’s parent company, Alphabet, announced Thursday it narrowly missed investor expectations in its quarterly earnings report, while Microsoft slightly bested investor predictions.
Analysts hoped for earnings of $9.67 per share on $25.22 billion in revenue from Alphabet, but after markets closed the company reported earnings of $9.36 per share on $26.06 billion in revenues during its fourth quarter that ended Dec. 31. Investors were excited to see Alphabet’s “Other Bets” category that include smart thermostat division Nest and life science organization Verily, lose less money and bring in more revenue.
Compared to the $150 million earned during the same period in 2015, Other Bets had $262 million in revenue but the division remains a large money loser and cost the company $1.1 billion -- $100 million less than in the fourth quarter last year.
Overall, Google posted an increase in revenue for the quarter.
“Our growth in the fourth quarter was exceptional -- with revenues up 22 percent year on year and 24 percent on a constant currency basis,” Alphabet CFO Ruth Porat said in a statement. “This performance was led by mobile search and YouTube. We’re seeing great momentum in Google’s newer investment areas and ongoing strong progress in Other Bets.”
At Microsoft, the company announced that its ventures beyond its core business of computer software are taking off.
Microsoft’s $26 billion acquisition of social network LinkedIn officially closed last month and has earned the company $228 million in revenue since Dec. 8.
Cloud computing products drove Microsoft to beat revenue expectations. Revenue earned by its personal computing division, which includes its famed Windows operating system, actually declined 5 percent to $11.8 billion compared to last quarter. A slowing global market for PCs appears to be to blame.
“Our customers are seeing greater value and opportunity as we partner with them through their digital transformation,” CEO Satya Nadella said in a statement. “Accelerating advancements in AI [artificial intelligence] across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”
Microsoft reported adjusted earnings of 83 cents per share on adjusted revenues of $26.1 billion. Analysts had projected 79 cents on revenues of $25.2 billion.Last Mod: 27 Ocak 2017, 08:12