Google's stock slides on earnings report; 1.3 million Android devices activated daily

Google's stock slides on earnings report; 1.3 million Android devices activated daily
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

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.

source: WSJ, WallStreetCheatSheet via AndroidCentral


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27 Comments

1. gallitoking

Posts: 4721; Member since: May 17, 2011

it wil be an accomplishment when those so call activations come from high end devices, thats what google/android stand for.. high end tech

2. p0rkguy

Posts: 685; Member since: Nov 23, 2010

it wil be an accomplishment when gallito decides to talk negatively about Apple, that's what gallito stand for... iF*g.

14. TROLL

Posts: 4851; Member since: Apr 13, 2012

Lmao, that was funny...iF*g. That's degrading, nasty lowlife names they have and are known by.

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

1.3 million people a day are seeing how much freedom they can get at a cheaper price. :)

6. jroc74

Posts: 6023; Member since: Dec 30, 2010

Do you really think all those activations come from low end, bargain phones? How many GS3's do you think were sold? How many One X 's? How many RAZR's and RAZR Maxx's? Please...

9. Sackboy117

Posts: 178; Member since: Oct 17, 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.

10. Mxyzptlk unregistered

High end yet amazingly it becomes outdated so quickly. There's some discrepancy with the supposed activations.

12. jroc74

Posts: 6023; Member since: Dec 30, 2010

The mistake you made is thinking everybody chases specs or new phones. So many activations is about choice. They arent all high end, they arent all low end. They arent all 2012 phones. Choice.....get used to it.

15. TROLL

Posts: 4851; Member since: Apr 13, 2012

Neither can u, I or other's can't keep up with Android! Tech and specs are moving, unlike 1 phone every 2years, with same design....

16. TROLL

Posts: 4851; Member since: Apr 13, 2012

Don't you ever post postively? Whatever you say or post, you still get thumbed down!

11. loli5

Posts: 76; Member since: Oct 08, 2012

It will be an accomplishment, and possibly a sign of the apocalypse, the day you can form a complete and grammatically correct sentence.

17. taz89

Posts: 2014; Member since: May 03, 2011

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

18. FAW-Q

Posts: 63; Member since: Jul 29, 2011

They are all from High End devices! Google counts each time a Android nerd installs a new ROM.

25. Nadr1212

Posts: 741; Member since: Sep 22, 2012

Rich bastards!!!!

4. p0rkguy

Posts: 685; Member since: Nov 23, 2010

R.R. Donnelley is gonna get a lot of sh*t for this. A lot of sh*t.

5. Dr.Phil

Posts: 2293; Member since: Feb 14, 2011

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.

7. someones4

Posts: 627; Member since: Sep 16, 2012

this is bollocks. a drop of 8% just because earnings fell short? Banker and financiers are really heartless

8. Zero0

Posts: 592; Member since: Jul 05, 2012

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...

13. 8logic

Posts: 153; Member since: Mar 05, 2012

actually, they say revenue was higher then expected, they probably carried more expenses than estimated. it could be all the mergers and R&D spending (which is a major PLUS)

23. someones4

Posts: 627; Member since: Sep 16, 2012

Maybe that's why google is slowly moving towards hardware as well.

19. JunkCreek

Posts: 407; Member since: Jul 13, 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.

20. jeff1434325

Posts: 97; Member since: Aug 07, 2012

well, I think earnings miss is a treanding right now. (Microsoft and Google)hehehe....

21. gothicheart

Posts: 83; Member since: Oct 17, 2012

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...

24. darac

Posts: 2156; Member since: Oct 17, 2011

This is hands down one of the stupidest comment ever posted on this site.. Gosh, dummy, here's the thing - android ACTIVATION means firing up an android device and registering it online for the FIRST TIME. Turning it on again does not equal to that.. damn -.-

27. maxout

Posts: 32; Member since: Oct 20, 2012

Its more like activating a device after purchase first time. i agree with darac.

22. darac

Posts: 2156; Member since: Oct 17, 2011

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

26. maxout

Posts: 32; Member since: Oct 20, 2012

Well, Its good time to buy then... after 5 new QuadCore devices it might pick back up by Jan 2013.

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