Alphabet Inc. (NASDAQ: GOOGL) reported second-quarter 2019 results after markets closed Thursday. The search engine behemoth reported adjusted diluted earnings per share (EPS) of $14.21 on revenues of $38.94 billion. In the year-ago quarter, Alphabet posted adjusted EPS of $11.75 on revenues of $32.66 billion. Analysts were expecting EPS of $11.30 on revenues of $38.15 billion.
The Google segment posted second-quarter revenues of $38.78 billion, up from $32.51 billion a year ago. Operating income rose from $8.96 billion to $10.39 billion. The operating loss on Other Bets totaled $989 million, up from $732 million in the year-ago quarter.
Traffic acquisition costs paid to Google Network members fell by about two percentage points to 69% of Network revenues, or $3.62 billion. Payments to distribution partners totaled $3.62 billion, about 13% of websites revenues. Total traffic acquisition costs rose from $6.42 billion to $7.24 billion and represent a dip of 1% as a percentage of total advertising revenue.
Paid clicks on Google websites were up 28% year over year and up 9% sequentially. Aggregate cost per click fell 11% compared with the year-ago quarter and was down 1% sequentially.
Alphabet on Wednesday announced a $25 billion buyback program for its Class C common stock.
Alphabet did not offer guidance in its earnings statement, but analysts are looking for third-quarter EPS of $12.07 and revenues of $39.67 billion. For all of 2019, estimates call for EPS of $45.55 and revenues of $160.64 billion.
Alphabet shares have fallen nearly 12% since the competed last reported quarterly results in April primarily as a result of slumping ad sales. The company turned that situation around in the second quarter and the share price got a sharp bump in Thursday’s after-hours trading session.
Alphabet’s stock closed down about 0.3% Thursday at $1,135.79 but jumped by about 7.4% at $1,219.50 in after-hours trading. The stock’s 52-week range is $977.66 to $1,296.97 and the consensus 12-month price target is $1,335.22.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
