Despite all the qualms and lowered expectations from analysts, Google (NSDQ: GOOG) reported Q3 revenues of $5.54 billion, up 31 percent over last year, and net income of $1.56 billion, or earnings per share of $4.92.  Google beat the average EPS estimate from analysts of $4.74 a share, according to FactSet Research (via MKTW). Compared sequentially, though, Google showed a modest 3 percent increase in revenue over Q2. Excluding traffic acquisition costs of $1.5 billion, net revenue was $4.04 billion. Google’s shares snapped back this afternoon during the last hours of today’s session and are trading at $375.97. Some specifics:

—Network revenues: Network revenues—the revenue generated by partner sites through AdSense—were up 15 percent of Q307 but a bare 1 percent over Q2.  Revenue growth for Google properties grew 34 percent year over year but only 4 percent over last quarter. Partner sites brought in $1.68 billion, 30 percent of total revenues.

—Google sites: Google’s own sites accounted for $3.67 billion, about 67 percent of total revenues, an increase of 34 percent over Q307 and 4 percent over Q2.

—TAC: TAC continues to decline after peaking again in Q407. This quarter’s $1.5 billion represented 27.9 percent of total advertising revenues, down from 28.4 percent in Q2 and 29.1 percent in Q307. Most of the TAC payments, $1.33 billion, went to AdSense partners.

—International: Revenue from outside the U.S. has been higher than domestic for the last two quarters and this one was no exception: $2.8 billion, or 51 percent. That’s down slightly from 52 percent in Q2. UK revenue totaling $776 million accounted for 14 percent of revenue, down slightly from 16 percent year over year and even with last quarter.

—Paid clicks: Paid clicks on Google and AdSense sites were up 18 percent over Q307 but only 4 percent over last quarter. Then again, at least they were up.

Earnings release | Webcast 4:30 p.m. eastern | Slides | Transcript (via SeekingAlpha)