NEW YORK — Google Inc. has beat Wall Street estimate with another strong quarter after disappointing the markets for the last two quarters coming in below expectations.
For this quarter, Wall Street forecasted Google’s revenue to be $14.80 billion and earnings per share of $10.34. Google had beaten that with $14.98 billion in revenue and earnings of $10.47 per share. Earnings per share were $10.74, compared with $9.03 a share for the year-earlier period. Analysts polled by Thomson Reuters expected revenue to climb to $14.82 billion, but only expected earning of $10.35 per share.
Google’s new Improved Campaigns, a sequence of recent changes in its marketing policy, has resulted in higher click volumes, however some analysts are concerned with the lower costs per click for the quarter, which results in lower ad revenue for the search giant.
Although Google benefited from a rise in aggregate paid clicks, one of the few negatives for Google on the quarter was that its cost-per-click deceased by 8% year-over-year in Q3 2013. The company also published some negative news from its Motorola mobility segment. Its revenues decrease from $1.78 billion in Q3 2012 to $1.18 billion in Q2 2013 while posting a $248 million loss on the quarter. Google shares rose by more than 6% in just after hours of trading.
Furthermore, According to Chief Business Officer Nikesh Arora, an increased in the mobile traffic, which the company has attempted to address through improving the Campaigns, was “a process. … This is definitely the first step we’ve taken toward multi-screen and multi-device advertising.”
Revenue for the well known search engine is up in several areas, with Google focusing on the new market segments which includes its Google Play marketplace, where it charges for downloads of media and apps through electronic devices, as well as new hardware such as the Chrome cast streaming device and Moto smartphone, from Motorola Mobility.
Meanwhile, the company reported that revenues for the quarter ended September 30, 2013 were $14.89 billion, an increase of 12% compared to the third quarter of 2012. Net income in the third quarter of 2013 was $2.97 billion, compared to $2.18 billion in the third quarter of 2012.
Google segment revenues were $13.77 billion, or 92% of consolidated revenues, in the third quarter of 2013, representing a 19% increase over third quarter 2012 Google segment revenues of $11.53 billion. While, Google owned sites generated segment revenues of $9.39 billion, or 68% of total Google segment revenues, in the third quarter of 2013. This represents a 22% increase over third quarter 2012 Google sites segment revenues of $7.73 billion.
In addition, Google’s partner sites generated segment revenues of $3.15 billion, or 23% of total Google segment revenues, in the third quarter of 2013, compared to $3.13 billion of Google network segment revenues in the third quarter of 2012.
Other revenues from the Google segment were $1.23 billion, or 9% of total Google segment revenues, in the third quarter of 2013. This represents an 85% increase over third quarter 2012 other Google segment revenues of $666 million.
Also, Ad revenue from YouTube also benefited, while 40 percent of streaming came from mobile, up from 6 percent one year ago.
Indeed, As a result of the company’s financial status which beat the Wall Street goals, the company’s stock has climbed to 10% in premarket trading, which reached approximately $980 per share.
Sources
2013 Earning report
http://investor.google.com/earnings/2013/Q3_google_earnings.html
http://www.theverge.com/2013/10/17/4849472/google-earnings-q3-2013
http://www.ibtimes.com/google-inc-goog-q3-2013-earnings-report-beats-wall-street-estimates-1431124