Alphabet Inc (NASDAQ: GOOG)
Google parent Alphabet Inc. fell short of Wall Street expectations for its third-quarter sales, despite posting a 37% rise in profit during the period. The Mountain View, California-based tech firm blamed surging expenses for a drop in its operating margins for the three months to September 30, 2018.
Alphabet shares lost $37.57, or 3.43% to $1050 in the extending trading session on Thursday after closing regular trading at $1095.57. The stock has rallied more than 4.5% since the beginning of the year, while the S&P 500 has gone down 0.7%.
GOOG Earnings & Outlook
The search giant posted net income of $9.19 billion, or $13.06 per share during the quarter, up from $6.73 billion, or $9.57 per share, in the same period a year ago.
Revenue came in at $33.74 billion, up 21% from $27.77 billion during the third quarter of the previous year.
Analysts expected adjusted earnings of $10.42 per share on $34.04 billion revenues, according to figures compiled by Refinitiv.
The company saw revenue from its advertising business rise 20.3% from a year earlier to $28.95 billion. Alphabet’s “Other Bets” unit recorded third-quarter revenues of $146 million, compared with $117 million in the period last year.
Its “other revenues” category (which includes hardware and cloud business sales) accounted for $4.64 billion of total revenue, a rise of 29.24% year-over-year.
The company continued to spend more money on creating futuristic technologies and hiring workers, a move that pushed its third-quarter capital expenditure up 49% to $5.2 billion. Analysts expect the firm to report fourth-quarter earnings of $11.06 a share on sales of $31.49 billion.
Alphabet Executives Comments
“Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day,” commented Ruth Porat, Chief Financial Officer of Alphabet and Google. “Alphabet revenues were $33.7 billion, up 21% versus the third quarter of 2017, and we remain focused on delivering on the opportunities we see.”
Alphabet Inc Company Profile
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments.
The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services.
The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California. – Yahoo Finance