Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of search giant Google (GOOG 1.66%) suddenly tanked midday by 11% after the company inadvertently reported third-quarter earnings prematurely.
So what: Earnings releases during the day are uncommon, and Google said its financial printer, R. R. Donnelley (RRD +0.00%), filed the 8-K SEC filing prematurely without authorization, but the company would host a customary conference call after the close. The release that was filed certainly isn't finalized, as there's a section that simply says "Pending Larry Quote," referring to CEO Larry Page.
Now what: As far as the actual results go, consolidated revenue came in at $14.1 billion, with a large chunk of that 45% increase related to the recently closed acquisition of Motorola. Excluding Moto, Google's revenue was up 18.5% to $11.5 billion. Non-GAAP net income was a hair over $3 billion, down from a year ago in part because Motorola's results are dragging down the search giant. In fact, the $170 million decrease in overall non-GAAP net income correlates pretty closely to the non-GAAP operating loss of $151 million that Motorola generated. Hello, Moto.
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