Larry Page Apologizes for Google's Earnings Report 'Scramble'

Maybe it's his throat issue, but CEO Larry Page does not sound too happy on this earnings call, which he began with an apology for the unexpected release.

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Update 4:33 p.m.: Maybe it's his throat issue, but CEO Larry Page does not sound too happy on this earnings call, which he began with an apology for the unexpected release. "I'm sorry for the scramble earlier today," were some of the first words out of his mouth, before going into his planned talk.

Update 3:06 p.m.: After halting shares this afternoon because of its earnings report mishap, Google has put out an official statement, with CEO Larry Page quote included. Considering we already know how the market reacted to the report, it's hard to get behind Page's words. "We had a strong quarter. Revenue was up 45 percent year-on-year, and, at just fourteen years old, we cleared our first $14 billion revenue quarter," he said. "I am also really excited about the progress we’re making creating a beautifully simple, intuitive Google experience across all devices." Shares will resume trading at 3:20 p.m. EST, after which we will see how the market reacts, now that we've heard from Page.

Update 3:22 p.m.: Looks like Page's positive take hasn't helped the company stock. Right after resuming trading, the stock opened 9 percent down, and is currently trading around 8 percent down, at the time of this writing.

Update 12:58 p.m.: Due to all the tanking because of Google's unexpected (and awful) earnings report, trading on Google's shares have now been halted. The early release is starting to look like a big mistake. Looking at the report, the missing quote from Google CEO Larry Page (which, of course, already has a Twitter parody account) is certainly suspect, leading us to believe it was an unfinished document, not yet ready for the world.

Original Post: Google wasn't supposed to announce its earnings until this afternoon, but an unexpected appearance of its earnings report on the SEC's Edgar system has its stock tanking, as it missed expectations. The company posted earnings of $9.03 a share on revenue of $11.33 billion, missing expectations for $10.65 a share on revenue of $11.86 billion, explains CNBC's Jeeyon Park. The company also posted $14.10 billion in revenue. However, as you can see below, Google's stock is taking a big hit, sinking around 8 percent as soon as the news came out.

The market seems to be reacting strongly to this little tidbit: Earnings fell 20% from a year ago as total costs rose and advertising prices continued to fall. That is a bad combination of things to happen. Also, it looks like Motorola hurt the company's profit, as Market Beat's Steven Russolillo and Kevin Kingsbury explain.  "Motorola MSI -0.51% weighed heavily on Google’s profit, generating an adjusted operating loss of $151 million, or 6% of the unit’s revenue," they write.

But, most scarily, Google's cost-per-click on its ads went down for the 4th Quarter in a row, further proving its ad-model is on a never-ending downward spiral to valueless. From the earnings report:

Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 15% over the third quarter of 2011 and decreased approximately 3% over the second quarter of 2012.

That follows a trend we noted from last quarter's results, which also saw a decline in cost-per-clicks. Meaning: Google's big search ad revenue source is becoming less and less lucrative. The company has blamed it on a move to mobile, where ads are even less valuable.

Update 1:21 p.m.: Google is blaming the unintended release on the printing company RR Donnelly, accusing it of drafting the earnings and sending it out without authorization, Google wrote on Google+. The printing company says it is investigating that, reports CNBC. Google will hold its earnings call at the previously scheduled 4:30 EST.

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