Google reports third quarter net of $2.97 billion

Google reports third quarter net of $2.97 billion
Despite a $248 million operating loss that was Motorola's contribution to the third quarter, Google reported net profits for the period of $2.97 billion. That is a 36% increase from the $2.18 billion net profit that Google scored last year. Revenue rose 12% to $14.89 billion and operating income, at $3.44 billion, showed operating margins of 23% Earnings per share rose 34% from $6.53 a share to $8.75.

Motorola's revenue of $1.18 billion accounted for 8% of Google's revenue, down from the $1.78 billion that accounted for 13% of its parents top-line last year. In the 2012 period, Motorola posted an operating loss of $192 million.

Paid clicks from ads rose 26% year-over-year in the third quarter, and rose 8% sequentially from the second quarter. The cost to Google for each click dropped 8% from the 2012 quarter and 4% from the second quarter of this year. This is positive for Google as it means that money is coming in much faster than it is being used to acquire business.

Excluding one time charges and the like, Google earned $10.74 a share for the third quarter, beating analyst's estimates of $10.34 a share. After hours, Google shares are up over 8%, or $73, to $962.

source: Reuters



1. Shatter

Posts: 2036; Member since: May 29, 2013

Motofailola, why did Google buy them. They are barley contributing anything to them.

2. Googler

Posts: 813; Member since: Jun 10, 2013

Too early to say that. Motorola is releasing better phones this year than last year. I can see that pattern continuing.

6. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Yea, plus they are innovating the most in the industry right now with features like always on and specialized hardware. Hopefully that pays off for them and we see increased innovation all around. Plus they've been getting high praise for several different products. 2014 is shaping up to be Android's best year I think. Apple might even end up being super good on their next release (although they are shafting more and more recently). well MS, so no bets on those guys, even though they just pirated jacked one of the best handset makers on the planet.

7. Googler

Posts: 813; Member since: Jun 10, 2013

I still remember negative comment after negative comment about the Moto X, but tons and tons of reviews praise it as being an outstanding phone. Users and owners love it because it's not just about a spec sheet, it's about tying it all together into a smooth handset. Motorola is finding their groove again and the future looks good. As for Android, it's found it's own. Handsets are there and Google has done a great job since ICS. I think you're right about 2014.

14. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

The X is a great phone. It's a shame their past practices and Samsung's huge marketing budget have marginalized it.

19. lsutigers

Posts: 832; Member since: Mar 08, 2009

Agreed, Google is doing very well on it's own and Motorola is a good brand but it's too early to tell whether or not they will be a successful business unit of Google. The Moto X is selling well at the big 3 carriers and Moto has plans for a less expensive model of the X for emerging markets. The big disappointment has been the Droid line at Verizon which is NOT selling well at all with stiff competition from Moto's own X, Samsung's, HTC's, Apple's and even LG's new offerings as well as the Nexus line.

3. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

i disagree. Moto is a good brand. 'We invented the mobile phone!'

11. Mxyzptlk unregistered

The word good is loosely tossed around here.

15. PapaSmurf

Posts: 10457; Member since: May 14, 2012

If it wasn't for Motorola, you wouldn't be carrying a cellphone.

17. stealthd unregistered

If it wasn't for Motorola someone else would have come up with it. Radio communications weren't new when the cell phone was invented.

20. cc3493

Posts: 158; Member since: Jul 06, 2013

and if it wasnt for apple you wouldnt be carrying a smarthphone either but that shouldnt be the point...

23. DigitalJedi_X2

Posts: 346; Member since: Jan 30, 2012

Uhhh... Smartphones were around long before apple jumped in the game. How did you not know this?

4. Sniggly

Posts: 7305; Member since: Dec 05, 2009

In the last quarter Motorola and Google got a completely new manufacturing plant up and running. Hell, until the last month of the quarter Motorola didn't even really have anything to sell on the carriers. Give them a break.

10. Mxyzptlk unregistered

Won't be long before it starts bleeding expenses. Manufacturing in America just to uphold a silly slogan doesn't really add anything meaningful.

16. Sniggly

Posts: 7305; Member since: Dec 05, 2009

It adds better quality control. It adds a precedent which Google will follow up on. It adds jobs, which means it helps the economy grow. "Made in America" may not pull patriotic heartstrings in you or me, but it's a huge value add for a lot of average customers. A strong manufacturing core is needed again for the American middle class to reappear. See, if you add a factory that ships 100,000 units a week, that feeds into shipping, parts supply, local food, and human transportation. Now, let's add three or four more around the country, as Google seeks to make one/two day delivery of customized smart phones (and tablets and laptops too) to all corners of the country. Then let's add in more factories as other companies see the value customers seek paying off for Google. If the Moto X is even moderately successful, Motorola and Google may have just saved the American economy. It may sound like hyperbole, but it's not.

22. sprockkets

Posts: 1612; Member since: Jan 16, 2012

except when apple does it, since they are doing it with their imacs you know, right?

24. JMartin22

Posts: 2372; Member since: Apr 30, 2013

It's actually not that much more expensive than manufacturing the parts in China. As China's standard of living is on the raise. But you are an iDiot. So enjoy that iPhone of yours you overpaid for by a good gross of 30%.

8. woodshop20

Posts: 459; Member since: Sep 14, 2013

Motorola is actually improving a lot. We've seen what companies like Sony can do when they start following trends and listening to their customers. Apple should take note. No retina display for iPad mini? They're just shooting themselves in the foot.

12. akki20892

Posts: 3902; Member since: Feb 04, 2013

Google it.

18. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Except patents and delivering one of the best phones at a great price.

21. xfire99

Posts: 1206; Member since: Mar 14, 2012

Google bought Moto for its huge patents folio and not for the devices. Since Apple were suing everyone at that time include Google. With Moto patents folio, Google had a huge arsenal with patents to use and Apple wont stand a chance.

25. bloodline

Posts: 706; Member since: Dec 01, 2011

Motorla and google have both said that their is a pipe line to clear before the good stuff can start coming. I think its pretty obvious that if you buy failing business you don't expect it to really add value until a few years after your influence. idiot.

5. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Interesting that despite increased costs from opening an entirely new plant and only having a lineup to sell during the last month of the corner, Motorola's losses this quarter were only 15 percent higher than they were for the same quarter last year.

9. TheLolGuy

Posts: 483; Member since: Mar 05, 2013

That's because of the massive layoffs they did to get rid of the bad apples. They're in the process of assimilating Motorola and bringing their corporate culture into the company. Restructuring plans always take time. I'd say by the end of next year will probably be when Motorola will see stable quarterly reports again barring major screwups. I think Dennis Woodside is doing a fine job.

13. MartyK

Posts: 1043; Member since: Apr 11, 2012

Humm, Just imagine if Google just add $20.00 more on top of their already low price of Nexus Brands, and made 1 Phablet and 1 Phone...they would make a killing!!!!

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