FILE - In this June 5, 2014 file photo, a man walks past a Google sign at the company's headquarters in Mountain View, Calif. Google reports quarterly financial results after the market closes Thursday, Oct. 16, 2014. (AP Photo/Marcio Jose Sanchez, File)

FILE - In this June 5, 2014 file photo, a man walks past a Google sign at the company's headquarters in Mountain View, Calif. Google reports quarterly financial results after the market closes Thursday, Oct. 16, 2014. (AP Photo/Marcio Jose Sanchez, ... File) (The Associated Press)

Google's 3rd-quarter earnings slips as hiring spree boosts operating expenses

Markets Associated Press

Google's third-quarter earnings slipped 5 percent on higher expenses and as the Internet search leader absorbed a charge covering a mobile patent.

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The results announced Thursday fell below analyst estimates, triggering a nearly 3 percent decline in Google's stock price in extended trading.

Google Inc. earned $2.81 billion, or $4.09 per share, for the three months ending in September. That compared to income of $2.97 billion, or $4.38 per share, at the same time last year.

The earnings for the latest quarter were dragged down by a $378 million charge tied to patent royalties that Google acquired when it bought Motorola Mobility in 2012. Google is now in the process of selling Motorola to Lenovo Group in a deal expected to close by the end of this year.

If not for the charge and other one-time items, Google said it would have earned $6.35 per share. That figure missed the analyst target of $6.46 per share among analysts surveyed by Zacks Investment Research.

The Mountain View, California, company posted revenue of $16.5 billion, a 20 percent increase from year. But Google's operating expenses, excluding costs for employee stock compensation, surged 30 percent as the company added nearly 3,000 employees during the quarter.

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After subtracting Google's ad commissions, revenue stood at $13.2 billion, in line with analyst projections.

Google's stock shed $15.13 to $509.38 in extended trading. The stock has fallen 4 percent this year.