Alphabet Inc. (GOOGL) - Get Report shares were little changed in after-hours trading Thursday, after the diversified technology company reported stronger-than-expected earnings for the second quarter.
Alphabet has benefited from the coronavirus pandemic that has kept consumers and businesses at home, glued to their technology systems. But advertising has slumped amid the global economy’s meltdown.
The company posted revenue of $38.297 billion in the second quarter, down 2% from $38.944 billion in the year-ago quarter. The FactSet analyst consensus called for $37.33 billion of sales in the latest quarter.
Net income registered $6.959 billion, or $10.13 per share in the latest quarter, down from $9.947 billion, or $14.21, last year. Analysts predicted profit of $7.94 per share in the latest quarter.
Second-quarter revenue was “driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues,” Alphabet CFO Ruth Porat said in a statement. “We continue to navigate through a difficult global economic environment.”
Google ad revenue slid 8% to $29.867 billion in the latest quarter from $32.494 billion a year earlier. Revenue from Google’s cloud division, a major beneficiary of the pandemic, soared 43% to $3.0 billion in the latest quarter, from $2.1 billion a year ago.
Other revenue, which includes YouTube non-advertising revenues, jumped 26% to $5.124 billion from $4.08 billion.
Alphabet’s board has authorized the company to repurchase up to an additional $28.0 billion of its Class C capital stock. The repurchases are expected to be executed from time to time.
Alphabet recently traded at $1,547.00, up 0.56% in after-hours trading, after rising 0.98% in the regular session Thursday. The stock has climbed 15% so far this year through Thursday’s close.
Alphabet, Amazon.com and Apple are holdings in Jim Cramer's Action Alerts PLUS member club.