Alphabet Inc. (GOOG,GOOGL), the parent company of Google, Tuesday reported a fourth-quarter profit and revenues that trumped Wall Street estimates, sending its shares up 7% in after-hours trading.
Alphabet reported fourth-quarter profit of $15.23 billion or $22.30 per share, up from last year’s profit of $10.67 billion or $15.35 per share. On average, 29 analysts polled by Thomson Reuters estimated earnings of $15.99 per share for the quarter. Analysts’ estimates typically exclude one-time items.
Revenues for the quarter grew 23 percent to $56.90 billion from $46.08 billion last year. Analysts had a consensus revenue estimate of $53.15 billion for the quarter.
Google advertising revenues rose to $46.20 billion from $37.93 billion last year, while Google other revenues increased to $6.67 billion from $5.26 billion. Google cloud revenues increased to $3.83 billion from $2.61 billion last year.
CEO Sundar Pichai said: “Our strong results this quarter reflect the helpfulness of our products and services to people and businesses, as well as the accelerating transition to online services and the cloud.”
CFO Ruth Porat said: “Our strong fourth quarter performance, with revenues of $56.9 billion, was driven by Search and YouTube, as consumer and business activity recovered from earlier in the year. Google Cloud revenues were $13.1 billion for 2020, with significant ongoing momentum, and we remain focused on delivering value across the growth opportunities we see.”
GOOG closed Tuesday’s trading at $1,927.51, up $26.16 or 1.38%, on the Nasdaq. The stock further gained $2,068.00, up $140.49 or 7.29%, in the after-hours trade.
Source: Read Full Article