Google Q3 financial statement out early, shares pummeled
- — 18 October, 2012 17:24
Google's third-quarter financial results are out early and its shares are taking a beating because the company missed revenue and net income expectations.
Revenue came in at US$14.10 billion for the quarter ended Sept. 30, 2012, up 45 percent year on year, according to what looks like a draft copy of the press release that was posted on the U.S. Securities and Exchange Commission's site.
Subtracting commissions and other fees paid to advertising partners, revenue was $11.33 billion, below the consensus expectation of $11.86 billion from financial analysts polled by Thomson Financial.
Meanwhile, net income was $2.18 billion, or $6.53 per share, down from $2.73 billion, or $8.33 per share, in 2011's third quarter.
On a pro forma basis, which excludes certain items, net income was $3.01 billion, or $9.03 per share, below the financial analysts' consensus expectation of $10.65.
At around 1 p.m. Eastern Time, company shares were trading at $687.30, down a little more than 9 percent. Trading in company shares was reportedly halted after a quick drop in their value.
It's not clear whether the company intended to release the earnings statement early, or whether it was a mistake. As is customary, Google was expected to release its financial report after the markets close.
Google didn't immediately respond to a request for comment.
Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general technology breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.