The EU just hit Google with a $5B fine, and for those reasons, and a few others, all eyes were on the Alphabet earnings report, which was posted today after the closing bell.
If you don’t know, Alphabet is Google’s parent company. See why this was important?
In the end, the Alphabet earnings report surpassed expectations, causing the stock to pop off in after-hours trade.
Here’s what we know.
Alphabet Earnings Report: July 23rd, 2018
Alphabet beat both EPS and revenue expectations, with most of the revenue coming from Google’s advertising business.
For the second quarter, Alphabet reported that earnings per share (adjusted) came in at $11.75. This is quite a jump from the $9.59 expected by analysts.
As for revenue, the jump was not as considerable, but still noteworthy. The multinational conglomerate company reported revenue of $32.66B, while analysts forecasted Alphabet revenue to be $32.17B.
Other Important Numbers to Know:
- Google’s ad business brought in $28B in Q2.
- ‘Other revenues’ (like hardware sales) came in at $44B.
It’s not just that revenue increased, but so did the company’s capital expenditures. In fact, it nearly doubled 2017’s figure, now at $5.5B.
According to Ruth Porat, CFO of Alphabet, the capital expenditures jumped due to investments in product equipment, as well as data centers.
If you take away the EU fine, the company’s operating expenses were up 24% Y-O-Y, coming in at $10.9B.
All Smiles
The Google EU fine is unfortunate, but I’m sure Alphabet was pleased to report some light in what was a dark time. And the market appears to be thankful for that.
The Alphabet Stock (NASDAQ:GOOGL)
In anticipation of the Alphabet earnings report, the stock spent the day in the green zone, closing up 1.74%. Then, after the report was published, the Alphabet stock jumped 5% in after-hours trade.
As of right now, Alphabet is trading at $1,244.47, which puts the stock up 3.23%.
>> Alphabet Inc. Partners with Telkom to Deploy Internet Balloon in Kenya Next Year
Featured Image: Twitter
