Google has its first $14B quarter but net income decreases

Google's Q3 results came out earlier than planned and since they didn’t meet Wall Street's expectations, the company's shares dipped and trading of the stock had to be suspended temporarily. Google's shares ended the day 8% down.

While not what analysts expected, Google's third quarter wasn’t that bad. The search giant had its first $14 billion revenue quarter (a 45% increase year over year), helped by revenue from Motorola.

Net income was $2.18 billion, down from the $2.73 billion of last year's third quarter. Google's ads saw a 33% increase in paid clicks, but the price of those clicks was 15% lower than in Q3 2011. The reason behind the drop is the increasing share of mobile ads, which are cheaper.

Anyway, Motorola had a rough quarter. Its revenue was $2.58 billion, but it posted an operating loss of $527 million ($505 million of which was lost by the mobile phone department).

You can get more details on Google's financial performance from their full press release.

Source

Source : http://www.gsmarena.com/google_has_its_first_14b_quarter_but_net_income_decreases-news-4969.php

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Google's shares fall after quarterly financials accidentally revealed

Google stock drops as company fails to meet expectations

Google's shares took a 9 percent hit, dropping to $687.30 on Thursday as news the company wouldn't make revenue or earnings expectations hit the market.

The bad news came a bit earlier than expected, as Google's quarterly financial report was released ahead of schedule and without proper authorization by the company's financial printer RR Donnelley.

In response, all trading on NASDAQ pertaining to Google's stock was halted.

"Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorization," said a statement from Google.

"We have ceased trading on NASDAQ while we work to finalize the document. Once it's finalized we will release our earnings, resume trading on NASDAQ and hold our earnings call as normal at 1:30 PM PT."

Analysts not surprised

Though the early peek at Google's financials came as a bit of a surprise, analysts weren't shocked by the quarterly results.

Speaking to Reuters, BCG analyst Colin Gillis shared his perspective on why Google took such a hit Thursday afternoon, and pointed the blame at the mobile market.

"Click prices declined for the fourth consecutive quarter after rising for eight consecutive quarters before then. That's a negative. This is the mobile problem."

"The other bit is the Motorola millstone had been ignored by the market, and - boom - now you've got weak revenue from Motorola. When you acquire a business and you're about to whack all kinds of people and close offices, you know what happens to the employees? They take their eye off the ball. Sales are down."

Google was expected to close the quarter with shares improving at $10.65 each, but instead the final numbers showed only a $9.03 increase.

Wall Street expected Google's overall revenue earnings were to approach $11.9 billion, but the third-quarter results showed only $11.3 billion in earnings.

What's next?

Google is scheduled to host an event in New York on Oct. 29, where it's expected the company will announce new Android devices.

With Apple potentially unveiling the Nexus 7 competitor, the iPad Mini, on Oct. 23, Google will have its work cut out for it if the company hopes to bounce back from a disappointing third quarter.

Releasing a slate of new phones like the rumored LG Nexus 4 and HTC Nexus 5 might help, as could a 32GB Nexus 7 or the 10-inch Nexus 10 tablet.

Google isn't going anywhere any time soon. However, it will be worth monitoring the company's progress during the fourth quarter to see if it can turn things around headed into 2013.

Source : http://www.techradar.com/news/computing/googles-shares-fall-after-quarterly-financials-accidentally-revealed-1105399

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