Friday, October 19, 2012

Google 3Q'12 Results Miss Expectations

Google (GOOG) reported 3Q'12 results yesterday (02012.10.18) and it caused havoc on Wall Street. The results were supposed to be reported after the markets closed, but they were released early (mid-day). The results of themselves did not please Wall Street and GOOG stock got hit hard. The following headline summarizes things nicely: "Google Shares Slammed! Company Misses Estimates in Premature Earnings Release".

GOOG closed on 02012.10.17 at $755.49. Yesterday (02012.10.18) GOOG hit an intra-day high of $759.42 before the 3Q'12 results were released early. GOOG plunged to $676.00 before closing at $695.00. For the day, GOOG was down 8%. Volume was 12.43 million vs. t3m-avg. of 2.77 million.

Here are my observations of the 3Q'12 results: free cash flow of $3.13 billion; capital expenditures were $872 million; "cash" at $45.7 billion; effective tax rate of 22%. From Google's press release: "Headcount – On a worldwide basis, we employed 53,546 full-time employees (36,118 in our Google business and 17,428 in our Motorola business) as of September 30, 2012, compared to 54,604 full-time employees as of June 30, 2012."

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