Alphabet Misses On Q1 Revenue, Earnings As ‘Other Bets’ Loss Widens

By | April 21, 2016

Scalper1 News

Alphabet ( GOOGL ) unit Google reported Q1 sales and earnings that earnings that missed Wall Street’s expectations. Alphabet reported its total revenue rose 17% year over year to $20.257 billion. Analysts polled by Thomson Reuters had expected $20.37 billion. Earnings per share ex items rose 14% to $7.50. Analysts had wanted to see EPS ex items of $7.97. Revenue excluding traffic acquisition costs or TAC – what the company pays to other sites to carry its ads – climbed 18% to $16.469 billion. Analysts had expected $16.54 billion. The diverse group that Alphabet calls its “Other Bets” range from self-driving cars to smart home device maker Nest. The Other Bets segment logged an $802 million operating loss in Q1, Alphabet reported, deepened from a $633 million loss in the year-earlier quarter. When Alphabet released Q4 earnings in February, the tech giant revealed that it logged an operating loss of $3.6 billion on such moonshot projects in 2015. As is its custom, Alphabet did not provide guidance. Analysts polled by Thomson Reuters are expecting to see Q2 total revenue rise 17.45% year over year to $20.82 billion. Alphabet is expected to post Q2 EPS ex items of $8.22, up 17.6% year over year. Q2 revenue excluding TAC is expected to rise 18.09% year over year to $16.946 billion, according to Factset. “Our Q1 results represent a tremendous start to the year with 17% revenue growth year on year and 23% 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,” said Alphabet CFO Ruth Porat in a statement. Alphabet stock was down 5% in after hours trading on Thursday after closing at 780, up a fraction. Scalper1 News

Scalper1 News