Google Parent Alphabet Q3 Profit, Revenues Beat Wall Street View; Shares Up 7%

Alphabet Inc. (GOOG,GOOGL), the parent company of Google, Thursday reported a third-quarter profit and revenues that trumped Wall Street estimates, sending its shares up 7% in after-hours trading.

Alphabet reported third-quarter profit of $11.25 billion or $16.40 per share, up from last year’s profit of $7.07 billion or $10.12 per share. On average, 30 analysts polled by Thomson Reuters estimated earnings of $11.21 per share for the quarter. Analysts’ estimates typically exclude one-time items.

Revenues for the quarter grew 14 percent to $46.17 billion from $40.50 billion last year. Analysts had a consensus revenue estimate of $42.88 billion for the quarter.

Google advertising revenues rose to $37.10 billion from $33.80 billion last year, while Google other revenues increased to $5.48 billion from $4.05 billion. Google cloud revenues increased to $3.44 billion from $2.38 billion last year.

“We had a strong quarter, consistent with the broader online environment,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google. “It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.”

“Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “We remain focused on making the right investments to support long term sustainable value.”

GOOG closed Thursday’s trading at $1,567.24, up $50.62 or 3.34%, on the Nasdaq. The stock further gained $112.76 or 7.19% in the after-hours trade.

Source: Read Full Article