HomeFinancial MarketsAlphabet Beats Revenue and Earnings Estimates in Q1

Alphabet Beats Revenue and Earnings Estimates in Q1

Google’s parent company Alphabet reported its first-quarter earnings on Tuesday, delivering results that topped analysts’ expectations. The company previously failed to beat estimates for four straight quarters.

Alphabet’s revenue in Q1 came at $69.79 billion, a 3% increase from the year prior, compared to the $68.9 billion expected by analysts polled by Refinitiv. The reported $1.17 in earnings per share also exceeded the estimated mark of $1.07 per share.

The company also performed well in the digital advertising department despite the overall decline across the industry. Google Ad and YouTube Ad revenues came at $54.55 billion and $6.69 billion, respectively, versus expectations of $53.75 billion for Google and $6.64 billion for YouTube. Google Cloud revenue of $7.45 billion failed short of the $7.49 billion expected but turned a profit for the first time.

Alphabet’s earnings report also revealed that its board approved a $70 billion stock buyback and that the company had $2.6 billion in charges related to recent job cuts and office renovations.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud,” Alphabet’s CEO Sundar Pichai said in a statement. 

Alphabet’s stock closed at $103.85 per share on Tuesday before seeing a short jump to $108.45 in after-hours trading. The company’s shares are 16.53% up year-to-date.

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