Google's shares fell over $60 or more than 8% on Thursday after the company unexpectedly released its third quarter earnings report in the middle of the day. Usually, Google waits until the market is closed before reporting its quarterly numbers. And if you think Google did this because they couldn't wait to get the good news out, better guess again.
Thursday's action in Google
For the third quarter, Google reported lower earnings of $2.18 billion ($6.53 per share) vs. $2.73 billion ($8.33 per share) a year earlier for a 20.3% year-over-year decline. More importantly, the earnings fell short of Wall Streets expectations for adjusted net of $9.31 a share, instead reporting $9.03 of adjusted net earnings. On the positive side, revenues rose 18.6% to $11.53 billion, topping Wall Street estimates. The outlook for Q4 is for Google to report net of $10.52 a share, down from earlier estimates of $10.61. Wall Street sees Google reporting $37.37 a share in net earnings for 2012, down from earlier predications calling for $37.65.
Google blamed the early release of its earnings on financial printer R.R. Donnelley who accidentally filled Google's 10-K early this morning with the SEC, without authorization. With the report containing the earnings for Q3, Google was forced to go public with the announcement.
During a conference call held by Google after the market closed, Google's Larry Page announced that the company is activating 1.3 million Android devices a day, the same figure announced late last month. There are 500 million Android devices in use. You can listen to the entire call by clicking on the video below.
9.Sackboy117(Posts: 178; Member since: 17 Oct 2011)
Since your generalizing the Android phones into the high end and low end categories for stuff like activations, you have to apply it to other things as well, such as lag, customer satisfaction (Because who would be satisfied with a 99c Android Phone) and overalll percentages that still run the old OSes.
So when its said that Androids lag and "crash" more often, how many actually come from low end devices as opposed to high end devices.
i would like to know that figure too..my guess is that it will not be as small as we think...the reason i say this is due to success of the galaxy devices(highend version) and also the success of the razr series on verizon...lol would go more in depth but too tired to write today..though i think majority will mid and low end devices i firmly believe highend activation may be quite high due to the s3 mainly
I wouldn't really put any doubts on Google based on one bad quarter. We heard today that Google is indeed working with Motorola to produce devices that we should see next year (Larry Page talked about 12-18 months is the time it takes for you to see new devices being released, which pegs the second half of next year to be when we should see any fruition from Google buying Motorola. We will possibly see a Motorola Nexus device.) Also, the Google Glass project should also finally be released in it's finalized forms at the end of next year as well. But, even before all of that, we have the end of this month and possibly next month to look forward to in terms of possibly new software and devices being released under the Nexus moniker. This is of course just my opinion.
It makes sense though. Google's stock price was based off of expected earnings. They found out that Google spent more than thought, and that ads aren't making the money that they used to make. For a company who does almost nothing but advertise, that's scary.
I would expect Google to improve in the next couple of quarters. I'm not an investor or analyst, but they are digging Motorola out of a financial hole, and services like Google Play and Google Drive should open up some other revenue streams for Google. And then there's Glass...
19.JunkCreek(Posts: 407; Member since: 13 Jul 2012)
everyone, lg and crashes is happened all day long with MOST BIGGEST FAMOUS PC/LAPTOP/NETBOOK OS: WINDOWS! and we all still can live with that. tweaks here and there and again and again, but that's what you get when you choose freedom for your choice, crossplatform, the compactibility is always be the issues. come on, grow up.
wow, more than a million activations a day. must be from the way an android phone crashes multiple times in a day then you'd have to reactivate. And how can a company be proud of somthing like this. Go android more hangups and more crashes...means more reactivation...
Motorola was tanking Google with over 500 million bucks quarterly loss obviously.
The layoffs compensations were generous.
I think they "streamlined" it now so Google should rise up again in next report