Google grows but closes the third quarter below estimates and loses more than 3% to Wall Street in the after-hours. The Mountain View giant announced that earnings between June and September stood at 2,8 billion dollars, equal to 4,09 dollars per share, down 5% on the year. Excluding exceptional items, earnings per share were $6,35, up from $5,63 a year prior but below the consensus of $6,53.
As for revenues, they grew 20% year on year, to 16,52 billion dollars, against expectations for 16,57 billion. Operating expenses reached 6,1 billion, 37% of revenues, from 4,58 billion in the third quarter of 2013, 33% of revenues.
But what disappointed analysts above all was the slowdown in clicks on advertisements, which increased by 17% on an annual basis, against +26 and +25% in the first two quarters. Also between June and September, Google made nine acquisitions and hired about 3 employees, reaching a total of 55.030 employees.
Meanwhile, Google yesterday named Omid Kordestani as its new chief business officer, replacing Nikesh Arora, who was hired by Japan's Softbank Corp.
