Google’s Third Quarter 2012 Earnings: Profit down 20 percent to $2.18 billion, net revenue up 45 percent to $11.33 billion

in Technology

Trading in Internet search giant Google was halted after the company accidently released a disappointing earnings report about four hours ahead of schedule on Thursday (October 18, 2012). Google quickly blamed the blunder on its financial printer, R.R. Donnelley & Sons Co. and then released an official report about three hours after the trigger-finger one.

According to the earnings report, the third-quarter revenue excluding some items was $11.3 billion, short of the average estimate for $11.8 billion. The third-quarter profit, which was also below estimated profit of $10.65 a share, was minus some items of $9.03 a share. As a result, Google, the biggest seller of search-based advertising, dropped the most since January, closing at $695.42 on Thursday, down 8 percent after the results were inadvertently during regular trading hours.

The world's No. 1 Internet search engine also reported that the price advertisers paid per click on an ad continued to drop dramatically, decreasing 15 percent from the same period last year.

Larry Page 2012

Google co-founder and CEO Larry Page spoke during a news conference at the Google offices in New York City.

Larry Page

Larry Page was present in a conference call to discuss its third-quarter earnings which was leaked accidently ahead of schedule on Thursday (October 18, 2012). The CEO of Google found the quarter strong, noting that sales rose 45% over the year.

EzineSeeker.com

Google shares fell $60.49, or 8%, to $695 after the company reported a final version of its earnings document. The leaked release showed Google’s net income was down 20 percent year-over-year to $2.18 billion, or $6.53 a share, compared to $2.73 billion, or $8.33 a share in the same quarter of 2011.

EzineSeeker.com

Earlier this year, Google acquired Motorola Mobility whose revenue for the third quarter of 2012 was $2.58 billion, accounting for 18% of Google's consolidated revenues.

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Jolie Crussel has 349 articles online and 12 fans

Jolie Crussel, an economic expert, is keen on analyzing the economic situations in the world. She also enjoys writing articles about pay per click advertising.

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Google’s Third Quarter 2012 Earnings: Profit down 20 percent to $2.18 billion, net revenue up 45 percent to $11.33 billion

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Google’s Third Quarter 2012 Earnings: Profit down 20 percent to $2.18 billion, net revenue up 45 percent to $11.33 billion

This article was published on 2012/10/23