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Google has released its earnings report for the third quarter of the year. For the three month period, Google pulled in $2.78 billion in operating income, 19% of its $14.1 billion in revenues. This is down on same quarter last year, where It had $3.08 billion in operating income. Motorola contributed $2.58 billion in revenues for the quarter, but still operated at a loss of $527 million. The bulk of those losses, $505 million, were attributed to the mobile side of Motorola.

Google's EPS (Earnings Per Share) were just $6.53, down from $8.33 in the same period last year. Google's stock slid nearly 10% on the earnings report, triggering a halt in trading. Hopefully we'll know more in the coming days as to the reasons behind its lackluster earnings.

The initial earnings report was a bit interesting, as the SEC filing was missing a quote from Google CEO Larry Page, and marked as "PENDING LARRY QUOTE." According to The Wall Street Journal, Google's earnings were indeed released ahead of schedule to the SEC without its knowledge, which triggered the quick slide in stock price. As Google's official statement reads:

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

This is quite a blunder for a company of Google's size, and it's clear that the protocols for filing its earnings were not followed. According to Google, earnings were not to be released at that time.

Update: Google has filed their official Q3 2012 earnings report directly, with a proper quote from CEO Larry Page:

“We had a strong quarter. Revenue was up 45 percent year-on-year, and, at just fourteen years old, we cleared our first $14 billion revenue quarter. I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices.”

Google's official statement confirms the earnings numbers of the previous (premature) filing with the SEC, and will initiate trading of its stock for the rest of the day. The official investor earnings call is still scheduled for 1:30 PT / 4:30 ET.

We'll bring you more analysis of the earnings numbers later today.

Source: GoogleSEC; WSJ

 

Reader comments

Google Q3 2012 earnings released prematurely, revenues and operating income down

15 Comments

obviously this is because of Motorola with $527 loss. if Moto wasnt there Google would have made 3.307 billion in profit.

And for a few minutes when their stock fell would have been the best time to buy their stock and watch it climb back up .

I have to agree, looking at Google by itself they did exceptional this quarter. I think Motorola will turn around but with phones like HTC One X and Galaxy S3 they are up against some fierce competition. Hopefully their Droid Razr i will make a good impact on their losses.

That's a big part of it, but being down 15% in CPC surely hurts too, and that's the core business, which is really the key to stock slide.

Lackluster???? Lackluster???? Friggin A. 2.78 BILLION. Lackluster. (starts muttering under his breath about "perception")

Lackluster compared to expectations. The market does not care about the number, just the growth of the number.

What is with this line: “The bulk of those losses, $505 million, were attributed to the mobile side of Motorola.”

Umm, google only owns Motorola Mobility, not Motorola Solutions