Thursday, October 18, 2012

Google Inc (NASDAQ:GOOG)’s Shares Under Panic Mode After Earnings, Down over 9%

Google Inc(NASDAQ:GOOG)’s third quarter earnings, which came in unexpectedly early on Thursday missed analyst forecasts both on profits and revenues.

The internet search giant said it earned $9.03 per share in the third quarter, well below the consensus estimate that had forecast an EPS of $10.63; GAAP EPS came in at $6.53.

It reported revenues of $11.3 billion, against forecasts of $11.9 billion. Consolidated revenues of the company rose 45 percent to $14.1 billion.

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Paid clicks rose 33 percent year-over-year, while cost per click fell 15 percent.

Google’s international revenue, which represents more than half of its total revenues, hit $6.1 billion. In fact, its share in total revenues rose to 54 percent from 53 percent in the second quarter.

Google-owned web site advertising revenues grew 15 percent to $7.7 billion. 

The all-important traffic acquisition cost (TAC) number ticked up to $2.77 billion, from $2.2 billion.

The company reported that its cash stock pile had reached $45.7 billion.

Its revenues from Motorola were $2.58 billion, or 18 percent of consolidated revenues.

There was no word from Google about its Android operating system or anything about the Nexus tablets and its future prospects.

Shares in the company quickly sank and were trading down more than 9 percent at $687.30.

Reports suggested that the early release of the results was a mistake by the company and could have been done in error.

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