Google surpasses expectations

Google surpasse les attentes

Photo: Kimihiro Hoshino Agence France-Presse
The turnover of Google amounted to 39.3 billion, an increase of 21% compared to $ 32.3 billion in the same period a year earlier.

The financial results of Alphabet, the parent company of Google, have surpassed the expectations of Wall Street analysts in the fourth quarter, this has not prevented its decline through transactions in the after-meeting, Monday.

The company has recorded a profit of 8.9 billion US $in the most recent quarter, which is 12,77 US $per share, after a loss of 3.02 billion a year earlier, or 4,35 US $per share, due to a special charge of $ 9.9 billion.

The turnover amounted to 39.3 billion, an increase of 21% compared to $ 32.3 billion in the same period a year earlier, of which 80 % comes from advertising on its search engine and on YouTube, said the company. Analysts were on average earnings per share of 10,86 US$, a profit of $ 7.6 billion, and revenues of 38.9 billion, according to estimates collected by FactSet.

But spending significantly higher, as well business to create new data centers, or hire experts in cloud computing, have worried investors. In part because of the increase in its expenditure, Alphabet has announced an operating margin of 21 % in the fourth quarter, down from 24 % a year ago.

End of a year of pressure

The advertising commissions Alphabet, or the money it pays to other companies for direct internet users to its search tool, have climbed to $ 7.4 billion, compared to $ 6.5 billion a year earlier.

8.9 billion

It is the benefit that has saved the company in the most recent quarter, after a loss of 3.02 billion a year earlier.

The action Alphabet escaped, in the exchange of after-meeting, approximately 3.3 %, in spite of these results, released after the market close. The title has climbed 9% since the beginning of the year, a growth similar to that of the expanded index S&P 500 over the same period. In the final minutes of trading on Monday, he has reached 1141,42 US$, which represented an increase of 2 % over the last 12 months.

“Like Facebook, Google spell a year of unprecedented pressure on the technology sector without any scratch financial side. The giant of advertising has on Monday released very good annual results and quarterly closing its twentieth year with a bang “, one can read in The Echoes. Drawn by the growth of online advertising, the revenues of Alphabet rose 23 % to $ 136,8 billion for the full year 2018. Its profit grew by 142 % to reach 30.7 billion.

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