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Alphabet Blows Away Q4 Earnings Estimates, Shares Fall

Alphabet Blows Away Q4 Earnings Estimates, Shares Fall
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Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) shares are falling after hours despite reporting a big fourth-quarter earnings beat.

Fourth-quarter earnings came in at $12.77, beating estimates by $1.19. Sales came in at $39.276 billion, beating estimates by $296 million. Fourth-quarter net revenue, excluding traffic acquisition cost came in at $31.84 billion, beating estimates by $51 million.

"In 2018 we delivered strong revenue growth, up 23% year over year to $136.8 billion, and up 22% for the fourth quarter to $39.3 billion," said Ruth Porat, Chief Financial Officer of Alphabet. "With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products and experiences to our users, advertisers and partners around the globe."

Other Highlights

  • Revenues increased 22 percent year-over-year
  • Operating margin of 21 percent
  • Effective tax rate was 11 percent
  • Employee headcount increased 23 percent

Alphabet Class A shares are down 3.3 percent in after-hours trading. The stock closed Monday's session up 2 percent at $1,141.42 per share.

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Posted-In: Ruth PoratEarnings News Top Stories After-Hours Center Movers Trading Ideas Best of Benzinga


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