Google today reported its third-quarter earnings for 2014, with gross revenue of $16.5 billion and non-GAAP earnings per share (EPS) of $6.35. Analysts had expected earnings of $6.53 on revenue of $16.6 billion. In after-hours trading, the company is down by almost 3 percent.
Profits are also down, which is not terribly surprising. Cost per click related to ads on Google’s sites and network member sites are down 2 percent from last quarter. Google also saw a rise in operating costs from $4.58 billion in the third quarter last year to $6.1 billion this quarter.
Later, Google announced during its earnings call that Omid Kordestani is now Google’s permanent chief business officer. Kordestani temporarily held the role when former CBO Nikesh Arora left last quarter.
Today’s results follow an incredibly busy quarter for Google, which only yesterday unveiled Android 5.0 Lollipop and the first Android Lollipop devices: Motorola’s Nexus 6 and HTC’s Nexus 9. And indeed, Google’s progress on mobile, particularly the company’s mobile ad revenue growth this quarter, will play a major role in how investors react today.
Google also recently expanded its Google Shopping delivery service, inked deals with WordPress and Squarespace for Google Apps, and invested in new Google+ features. And on an entirely different note, Google faces growing legal pressure in the U.S. and Europe. Last month, the Federal Trade Commission hit Google with a $19 million fine for billing children for millions in unauthorized credit card charges. And abroad, Google was absolutely pummeled with “right to be forgotten” requests.
In normal trading, Google was down slightly by approximately one percent. Prior to the bell, GOOG traded around $524 per share — its lowest price since mid-May, but the figures are in line with the NASDAQ overall.
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