Google Parent Alphabet Q1 Profit, Revenues Trump Wall Street View; Shares Up 5%

FILE PHOTO: Federal appeals court judges L-R: Raymond Kethledge, Brett Kavanaugh, Amy Coney Barrett, and Thomas Hardiman, being considered by President Donald Trump for the U.S. Supreme Court, are seen in this combination photo from files. REUTERS/File Photos

Alphabet Inc. (GOOG,GOOGL), the parent company of Google, Tuesday reported results for the first quarter, with both earnings and revenues trouncing Wall Street estimates driven by a rebound in ad spending. Shares gained nearly 5% in the extended trading session, following the news.

Alphabet reported first-quarter profit of $17.93 billion or $26.29 per share, a huge surge from last year’s profit of $6.84 billion or $9.87 per share. On average, 28 analysts polled by Thomson Reuters estimated earnings of $15.88 per share for the quarter. Analysts’ estimates typically exclude one-time items.

Revenues for the quarter jumped 34 percent to $55.31 billion from $41.16 billion last year. Analysts had a consensus revenue estimate of $51.68 billion for the quarter.

Google advertising revenues rose to $44.68 billion from $33.76 billion last year, while Google other revenues increased to $6.49 billion from $4.44 billion. Google cloud revenues increased to $4.05 billion from $2.78 billion last year.

“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained,” said Sundar Pichai, CEO of Google and Alphabet. “Our Cloud services are helping businesses, big and small, accelerate their digital transformations.”

The tech company seems to have benefited from the lockdowns and other restrictions caused by the pandemic, as more and more people are using its services to search, read news and shop.

Ruth Porat, CFO of Google and Alphabet, said: “Total revenues of $55.3 billion in the first quarter reflect elevated consumer activity online and broad based growth in advertiser revenue. We’re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace.”

GOOG closed Tuesday’s trading at $2,307.12, down $19.62 or 0.84%, on the Nasdaq. The stock, however, gained $107.43 or 4.66%, in the after-hours trade.

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