Google shares surge following strong quarterly results

Google released its Q3 earnings today, beating analyst estimates with revenue of $14.9 billion and earnings of $10.74 per share

Google released its Q3 earnings today, beating analyst estimates with revenue of $14.9 billion and earnings of $10.74 per share. Analysts meanwhile were expecting Google's earnings to come in at $10.36 a share.

"Google had another strong quarter with $14.9 billion in revenue and great product progress,” Larry Page said in a press release.  “We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”

In after hours trading, shares of Google are up nearly 72 points, the equivalent of nearly 10%.

One metric to keep an eye on is that Google's average ad price continues to fall, in large part due to the rise of mobile. Mobile ads typically command lower ad rates than ads shown on desktops. Nonetheless, Google this past quarter was able to make up for slumping cost-per-click rates with increased volume.

A continuous black mark on Google's balance sheet, however, remains Motorola.

The Verge reports:

Revenue at Motorola Mobility, which has been a drag on Google's bottom line since acquiring the company last year, continued to fall, dropping $600 million since this time in 2012. Losses from the unit also grew to $248 million, a 24 percent increase of the same time last year. When asked about this increasing burn rate during the earnings call, Google replied it was still early days, said it was encouraged by the reception for the Moto X, and said it would continue building out marketing and distribution for Motorola over the coming years.

All in all, a solid quarterly showing from the good folks up in Mountain View.

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