Consumer Electronics
Google Slips Earnings Out Early, Metrics Sink the Ship
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Google Inc. (NASDAQ: GOOG) must have found out that someone knew its earnings report ahead of time because the internet search giant and Android O/S leader released its SEC Filing early. The comparable non-GAAP earnings in the third quarter came to $9.03 per share, down from $9.72 per share a year ago. The comparable revenues on an ex-TAC basis would be about $11.33 billion. Thomson Reuters had estimates of $10.65 per share and $11.86 billion. This is a huge disappointment when you consider that Google recently saw its stock hit an all-time high.
Google reported total revenues rose 45% to $14.10 billion for the quarter, but that is before deducting traffic acquisition costs (TAC) of $2.77 billion, or 26% of advertising revenues, in the quarter. Non-GAAP operating income and non-GAAP operating margin: In the third quarter of 2012, the expense related to SBC and the related tax benefits were $715 million and $155 million compared to $571 million and $116 million in the third quarter of 2011. In the third quarter of 2012, restructuring and related charges recorded in our Motorola business were $349 million, and the related tax benefits were $76 million.
Motorola revenues were $2.58 billion ($1.78 billion from the mobile segment and $797 million from the home segment), or 18% of consolidated revenues in the third quarter of 2012. The GAAP operating loss for Motorola was $527 million ($505 million for the mobile segment and $22 million for the home segment), or -20% of Motorola revenues in the third quarter of 2012. Non-GAAP operating loss for Motorola in the third quarter of 2012 was $151 million, or -6% of Motorola revenues.
Google shares are now down about almost $70 or down 9% at $687.30 against a 52-week range of $556.52 to $774.38. What a blunder.
JON C. OGG
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