Google Reveals Third-Quarter Miss, Shares Fall

By Katie Roof Technology FOXBusiness


Search giant Google (GOOGL) reported third quarter earnings after the bell Thursday, missing analyst expectations. Shares ticked down 3% in after-hours trading.

Continue Reading Below

Adjusted earnings came in at $6.35 per share, missing forecasts of $6.53. Excluding traffic acquisition costs, revenues were $13.17 billion, slightly beneath Wall Street expectations of $13.2 billion.

Despite missing expectations, Google showed 20% total revenue growth when compared to the same period last year. The quarter saw $16.52 billion in revenue, when compared to $13.75 billion last year.

“Google had another strong performance this quarter,” said CFO Patrick Pichette. “We continue to be excited about the growth in our advertising and emerging businesses.”

Fifty-eight percent of total revenue came from outside of the United States, bringing in $9.55 billion. Ten percent of revenue came from the United Kingdom, at $1.63 billion.

More On This...

Earlier in the week, executive chairman Eric Schmidt told an audience in Berlin that Google sees Amazon (AMZN) as its biggest competitor because consumers go there instead of Google to search for purchases.

Continue Reading Below

Google shares are up 20% in the past year and closed Thursday at $524.51.

What do you think?

Click the button below to comment on this article.