Wall Street winning streak was finished on Thursday, thanks to the surprising earnings from Google (GOOG). The earnings release was set to after the close , but had its earnings leaked by financial printing company R.R. Donnelley (RRD). The stock bounced slightly after being halted until 3:20ET, but still finished the day down 8%. GOOG reported EPS of $9.03 per share, well below consensus of $10.65, pointing to higher costs as the main reason for the miss. GOOG also missed on the top line, reporting revenues of $11.33 billion, vs. consensus of $11.87. Given the storm we saw in the market after the report was out, one may think we finished with heavy losses but the damage was light. The Nasdaq was obviously the weakest, finishing down 1%, but the Dow and S&P finished the day down only 0.06% and 0.24% respectively.
GOOG issues a release later saying: “arlier this morning R.R. Donnelley, the financial printer, informed us that they had filed our draft 8-K earnings statement without authorization” GOOG CEO Larry Page added ”sorry for the scramble”. R.R. Donnelly files more than 100,000 documents with the SEC each year and errors like this are extremely rare.