Google Q3 financial statement out early, shares pummeled
Google's third-quarter financial results are out early and its shares are taking a beatingBy Juan Carlos Perez, Miami | Friday, 19 October 2012
Google's third-quarter financial results are out early and its shares are taking a beating because the company missed revenue and net income expectations.
Revenue came in at US$14.10 billion for the quarter ended Sept. 30, 2012, up 45 percent year on year, according to what looks like a draft copy of the press release that was posted on the U.S. Securities and Exchange Commission's site.
Subtracting commissions and other fees paid to advertising partners, revenue was $11.33 billion, below the consensus expectation of $11.86 billion from financial analysts polled by Thomson Financial.
Meanwhile, net income was $2.18 billion, or $6.53 per share, down from $2.73 billion, or $8.33 per share, in 2011's third quarter.
On a pro forma basis, which excludes certain items, net income was $3.01 billion, or $9.03 per share, below the financial analysts' consensus expectation of $10.65.
At around 1 p.m. Eastern Time, company shares were trading at $687.30, down a little more than 9 percent. Trading in company shares was reportedly halted after a quick drop in their value.
Google blamed the premature release of the statement on a mistake by financial printer RR Donnelley. "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," a Google spokeswoman said via email.
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