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Alphabet Inc. (GOOGL) Crushes Earnings, Surges 5% on Strong Performance

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Alphabet Inc. (GOOGL - Free Report) just released its latest quarterly results, posting diluted earnings of $11.75 per share and total revenues of $32.7 billion.

Currently, GOOGL is a Zacks Rank #4 (Sell), but that could change based on today’s results. Investors should note that our consensus estimate for GOOGL’s earnings has seen negative movement in the last month, ticking up down one cent to $9.52 per share for the quarter. The company has also seen downward revisions across the board, including for the next quarter, current fiscal year, and next fiscal year.

Still, shares of the company have risen 6.3% over the past month and were up 1.1% during regular trading hours today.

However, the stock is currently up about 5% to $1,272.10 per share in after-hours trading shortly after its earnings report was released.


Beat earnings estimates. The company reported diluted earnings of $11.75 per share (metric excludes EU fine, lowers to $4.54 if included). This also includes a $1.17 per share benefit from a new accounting standard that changes the way companies account for equity security investments. Taking out this benefit, Alphabet reported earnings of $10.58, still crushing the Zacks Consensus Estimate of $9.51 per share.

Beat revenue estimates. The company saw revenue figures of $32.7 billion. Taking out revenues from Google Network Members, the company saw revenue figures of $27.9 billion, surpassing our consensus estimate of $25.65 billion.

Total revenue was up 26% on a year-over-year basis and 23% on a constant-currency basis. Operating income reached $7.88 billion before the fine and $2.8 billion after, representing margins of 24% and 9% respectively. Free cash flow reached $4.66 billion in the quarter.

"We delivered another quarter of very strong performance, with revenues of $32.7 billion, up 26% versus the second quarter of 2017 and 23% on a constant currency basis. Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet," said Ruth Porat, CFO of Alphabet and Google.

Here’s a graph that looks at GOOGL’s recent earnings performance:

Alphabet Inc. Price, Consensus and EPS Surprise

Alphabet Inc. Price, Consensus and EPS Surprise | Alphabet Inc. Quote

Mountain View, California-based Alphabet Inc. was founded in 1998 and is in the business of providing target-based advertisements on the web. The company is in the business of providing target-based advertisements on the web.

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