Business & Financial

Alphabet trounces profit estimates on ad sales surge

Logo is pictured at Google's European Engineering Center in Zurich

A logo is pictured at Google’s European Engineering Center in Zurich, Switzerland July 19, 2018. REUTERS/Arnd Wiegmann

(Reuters) – Alphabet Inc beat Wall Street estimates for second quarter profit on Monday as it benefited from soaring sales of online advertisementsm, sending shares 6 percent higher in trading after the bell.

The company posted adjusted earnings of $10.58 per share, excluding the impact of equity investments and European antitrust regulators’ record $5 billion fine for abusing its dominance in mobile software. Google is appealing the ruling.

When including the fine, second-quarter net income fell to $3.20 billion, or $4.54 per Class A and B common share and Class C capital share, from $3.52 billion, or $5.01 per share, a year earlier.

Revenue jumped to $32.66 billion from $26.01 billion. Analysts on average had expected revenue of $32.17 billion and earnings of $9.52 per share, according to Thomson Reuters I/B/E/S.

(Reporting by Arjun Panchadar in Bengaluru and Paresh Dave in San Francisco; editing by Patrick Graham)


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