Alphabet Earnings Miss in Q3; Shares Fall

Investing.com – Google’s parent company Alphabet (NASDAQ:) on Monday reported third-quarter earnings that missed analysts’ expectations as an increase in advertising growth was offset by rising costs.

The company reported per share (EPS) of $10.12 on revenue of $40.50 billion. Analysts polled by Investing.com forecast EPS of $12.28 on revenue of $40.3 billion. That compared to EPS of $13.06 on revenue of $33.74 billion in the same period a year earlier.

Costs rose to $31.32 billion in the quarter from $25.11 billion a year earlier, pressuring margins to 23% in the quarter from 26% a year earlier, offsetting a jump in advertising revenue.

Advertising revenue, which forms a large chunk of Alphabet’s top line, rose to $33.9 billion during the quarter, up from around $28.9 billion a year earlier.

Meanwhile, Alphabet’s Other Bets category, which includes smart home brand Nest, reported a wider operating loss of $941 million for the quarter, compared with a loss of $727 million in the previous year.

“I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud,” said CEO Sundar Pichai. “We’re focused on providing the most helpful services to our users and partners, and we see many opportunities ahead.”

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