What a surprise! Google files early and ugly

10/18/2012 2:05 pm EST


Jim Jubak

Founder and Editor, JubakPicks.com

Talk about negative surprises.

Google (GOOG) released earnings this afternoon ahead of schedule. The market was expecting earnings after the close of the New York market today.

The release came via a mistaken filing with the Securities & Exchange Commission of a draft 8K earnings statement. Google has blamed financial printer RR Donnelley for what it has called on unauthorized filing. The draft 8K came with blanks where a quote from Google CEO Larry Page was to have been inserted in the final version.

Trading in the stock was halted this afternoon after the share price tumbled more than 9%. The drop in Google has taken down the NASDAQ Composite Index as a whole (down 1.01% as of 1:45 p.m. New York time) and other technology shares such as Apple (AAPL) (down 1.6%.)

The mistake wouldn’t have produced such a big market response if the numbers in the draft hadn’t been so ugly. Third quarter adjusted profit was $9.03 a share. Analysts had been expecting adjusted earnings of $10.63 a share. Revenue minus traffic acquisition costs was $11.33 billion, just slightly below analyst projections for $11.39 billion.

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund http://jubakfund.com/ , may or may not now own positions in any stock mentioned in this post. The fund did own shares of Apple as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund’s portfolio at http://jubakfund.com/about-the-fund/holdings/
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