Shares of Google took a beating Thursday after the close of regular trading on Wall Street.
In after hours trading, Google fell on news that the Internet search giant posted a smaller-than-expected 20% increase in Q1 non-GAAP EPS to $8.08 on a 27% rise in gross revenues to $8.6 billion.
“The street” had forecast a profit of $8.10 per share.
“These results demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile. It’s clear that our past investments have been crucial to our success today, which is why we continue to invest for the long term,” said Patrick Pichette, CFO of Google.
The earnings call also marked Larry Page’s first call as Google CEO.
Page recently assumed the helm at Google from former CEO and current Executive Chairman Eric Schmidt.
Ahead of Thursday’s earnings some Wall Street watchers were nervous about Page’s return engagement as Google chief, given his proclivity for investing in long-term opportunities.
As the Associated Press reported earlier this week, “That philosophy has caused some investors and analysts to wonder if the company will exceed Wall Street’s quarterly earnings targets as consistently as it did under Schmidt for the past 6 1/2 years.”