Google Parent Alphabet Q2 Profit, Revenues Beat Street View

(RTTNews) - Alphabet Inc. (GOOG, GOOGL), the parent company of Google, Thursday reported a second-quarter profit and revenues that trumped Wall Street estimates, despite slowdown in ad revenues due to the ongoing Covid-19 crisis. However, the company reported its first revenue decline in history.

Alphabet reported first-quarter profit of $6.96 billion or $10.13 per share, down from last year's profit of $9.95 billion or $14.21 per share. On average, 29 analysts polled by Thomson Reuters estimated earnings of $8.34 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped 2 percent to $38.30 billion from $38.94 billion last year. Analysts had a consensus revenue estimate of $37.36 billion for the quarter.

Google advertising revenues dropped to $29.87 billion from $32.49 billion last year, while Google other revenues increased to $5.12 billion from $4.08 billion. Google cloud revenues increased to $3.01 billion from $2.10 billion last year.

"In the second quarter our total revenues were $38.3B, driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues," said CFO Ruth Porat. "We continue to navigate through a difficult global economic environment."

GOOG closed Thursday's trading at $1,531.45, up $9.43 or 0.62%, on the Nasdaq. The stock, however, dropped $13.45 or 0.88% in the after-hours trading.