Shares Of Alphabet Drop After It Misses Expectations
Shares of Alphabet Inc Class C (NASDAQ: GOOG) fell on Thursday in after-hours trading after the search engine giant reported first quarter earnings and revenues that fell short of analyst expectations.
Following the release of its earnings, the company had its class C shares fall by 6 percent, but has since then been able to recover some of those losses.
The company reported adjusted first-quarter earnings of $7.50 per share on $20.26 billion in revenue. Analysts had been expecting the Google parent company to report earnings of $7.97 per share on $20.37 billion in revenue.
Even though it missed analyst expectations, the company still had its adjusted earnings rise by 16 percent compared to the same period last year. It is also important to note that its revenues grew by double-digits as well.
"Our Q1 results represent a tremendous start to the year with 17 percent revenue growth year on year and 23 percent growth on a constant currency basis. We're thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth," Ruth Porat, CFO of Alphabet.
Diving further into its segments, the company reported its “other bets” segment saw $166 million in revenues for the quarter. The company is always looking for areas for immense growth and that consists of exactly that.
Traffic acquisition costs (TAC) were $3.788 billion versus $3.345 billion in the same period a year ago. Total TAC as a percentage of Google advertising revenues was 21 percent versus 22 percent in the same period a year ago.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.