Earnings of Google parent Alphabet top Wall Street expectations
Shares in Google parent Alphabet jumped in after-hours trading Monday as the company's second-quarter results exceeded Wall Street forecasts after taking into account a $5 billion US charge levied by European regulators.
The company reported second-quarter profit of $3.2 billion US. When excluding the fine, earnings came to $11.75 US per share, which topped the average estimate of $9.45 US per share by analysts surveyed by Zacks Investment Research.
Europe's Competition Commission accused Google of unfairly forcing handset makers to take its Chrome, Search and Play Store apps when using its free Android mobile system. Google has said it will appeal.
The internet search leader posted revenue of $32.66 billion US in the period, up 26 per cent, driven by ad revenue from mobile searches. After subtracting Alphabet's advertising commissions, revenue was $26.24 billion US, also exceeding Street forecasts of $25.64 billion US.
Shares rose four per cent in extended trading after the release of the earnings report.
Through the close of regular-session trading Monday, Alphabet shares had risen 15 per cent since the beginning of the year, while the Standard & Poor's 500 index has risen five per cent.