Google Inc (NASDAQ:GOOG) was all set to announce its earnings at 4PM EST today, and then just broke the news some fours hours before the decided time for unknown reasons. In the aftermath of this earnings surprise, Google Inc (NASDAQ:GOOG) fell about 8 percent in response, and is now trading at $687, down from its premium highs of $750. The reported earnings are below expectations and have shocked the Wall Street.
Non GAAP earnings per share were $9.03 in Q3, which is less than $9. 72 reported in corresponding quarter of 2011, whereas GAAP earnings were $6.53. The net revenue is $11.3 billion while consolidated revenue was $14.1 billion. Motorola Mobility’s made $2.58 billion that makes 18 percent of the net revenues for Google in Q3 2012.
The string of Google Inc (NASDAQ:GOOG) owned websites generated $7.73 billion, this makes up 67 percent of Q3’s revenue. Capex is expected to increase in the coming quarters. The portion of sales that are shared with partners reached $2.7 billion in the third quarter of 2012. Average CPP has reduced by some 15 percent during the third quarter while the number of paid clicks increased 33 percent.
This earnings report is sure to spark a ripple of effects throughout the market. Google Inc (NASDAQ:GOOG) shares have been halted pending further news.