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Device operating systems

Motorola Mobility Sinks Google's Earnings

Google (Nasdaq: GOOG)'s third-quarter earnings missed forecasts, and it looks like Motorola Mobility LLC is to blame.

Google's earnings call on Thursday afternoon wasn't finished as of this writing, but it wasn't hard to see the effects of Motorola Mobility, which had its earnings combined with Google for the first time.

The "problems seem related to Motorola, where actual revenue of $2.58 billion missed our $3.25 billion estimate. Google core search seems healthy," wrote analyst Brian Pitz of Jefferies & Co. Inc. , in a note issued shortly after Google's earnings were released.

Analyst Youssef Squali of Cantor Fitzgerald had more modest expectations for Motorola -- revenues of $2.87 billion -- but that still counts as a miss.

Google stock is down 8 percent in late-afternoon trading.

Overall, Google reported revenues of $11.33 billion and net income of for the third quarter of $2.18 billion, or $6.53 per share, compared to $2.73 billion, or $8.33 per share in the 2011 quarter.

Analysts surveyed by Thomson Reuters had expected Google to make $10.65 per share on revenue of $11.86 billion for the third quarter. — Craig Matsumoto, Managing Editor, Light Reading

joanengebretson 12/5/2012 | 5:18:53 PM
re: Motorola Mobility Sinks Google's Earnings

Makes you wonder if those patents that supposedly motivated Google's Motorola Mobility acquisition were worth it.

RDPIII 12/5/2012 | 5:18:44 PM
re: Motorola Mobility Sinks Google's Earnings

They were quite worth it and when Google is done with this aquisition as far as restructuring and focus, investors will see the light.

Telco 12/5/2012 | 5:18:41 PM
re: Motorola Mobility Sinks Google's Earnings

While the mobility is the to be the growth division, Motorola gained traction in the handsets and could not get it's application server/store concepts going.  Nokia and Blackberry have done no-better.  Thus to package the split of Mobility, it was bundled with Home Networks which had the non - newsworthy cable infrastructure with the STBs.  Then the STBs lost value with Cable MSOs took over guide and features.  As of recent, the Infrastructure division also has very limited purchases forth-coming, this is the 3rd revenue driver in the division to be taking a hit.  Quite frankly, Google is not even buying from the division.  Really sad, Patents are one thing, letting the intellectual property transfer to your customers is a waste of the value the company had.

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