Google Plunges on Weak Earnings
NEW YORK (TheStreet) -- Google
Google earned $9.56 per share on $11.1 billion in revenue, excluding traffic acquisition costs. Including TAC, which Google shares with its partners, the company generated $14.11 billion in revenue for the quarter.
Analysts surveyed by Thomson Reuters were expecting $10.78 per share on $14.42 billion in revenue, including TAC. Excluding TAC, revenues were expected to be $11.33 billion.
Costs-per-click (CPC), a key advertising metric, continued to be weak for Google, falling 6% year-over-year, and 2% sequentially. That weighed on results, as investors continue to worry whether mobile ads can ever be monetized at the rate desktop ads are.
"Google had a great quarter with over $14 billion in revenue - up 19% year-on-year," said CEO Larry Page in the press release. "The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people's lives even more is immense."
The company ended the quarter with $54.4 billion in cash and cash equivalents, up from $50.1 billion at the end of the first quarter. Google had 44,777 full-time employees at the end of the quarter, including 4,599 in Motorola. That's down sharply from the end of the first quarter, when it had 48,721 employees, including 9,982 from Motorola Mobile.
Shares of Google closed the regular session lower, losing 0.86% to $910.68. The stock is moving sharply lower in extended-hours trading, down 5.04% to $864.75 according to Nasdaq.com.
--Written by Chris Ciaccia in New York
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