NEW YORK (TheStreet) -- After Google (GOOG) - Get Alphabet Inc. Class C Report , (GOOGL) - Get Alphabet Inc. Class A Report reported weaker than expected results, a number of analysts wrote that the company's core business had actually performed well. Google shares, which initially dropped in after-hours trading following the report, reversed to the upside during its associated call last night and are rising in early trading today.

BACKGROUND: Google reported Q4 EPS of $6.88, slightly weaker than the expected $7.11 in earnings per share, with the company identifying unfavorable foreign exchange rates, one-time costs and its inability to keep up with demand for its Nexus 6 smartphone as some of the factors that hurt its results. Revenue came in at $18.1B, versus the consensus forecast of $18.46B.

ANALYST REACTION: Google's "noisy quarter masks...very solid" results, UBS analyst Eric Sheridan wrote in a note to investors today. Revenue from the company's websites surged 18% year-over-year, despite foreign currency headwinds, indicating that its core advertising business had a good quarter, the analyst stated. Additionally, the company's paid clicks rose 1 percentage point versus the same period a year earlier, despite a tough comparison, and YouTube continued to deliver strong user growth, Sheridan stated. He trimmed his price target on the name to $630 from $660 but kept a Buy rating on the shares. Similarly, JMP Securities analyst Ronald Josey believes that Google reported solid results, as he was encouraged by the 18% increase in the revenue generated by the company's websites. The analyst thinks that the company is gaining traction in mobile, while YouTube continues to execute well. He trimmed his price target on the stock to $625 from $640 but kept an Outperform rating on the shares. Citigroup, Pacific Crest, and Cantor were also upbeat on the Internet giant following the results and kept buy ratings on the shares.

PRICE ACTION: In early trading, Google Class A shares rose 3.3% to $530.38.

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Reporting by Larry Ramer.

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