Google Parent Alphabet Profit Rises, Shares Up

(RTTNews) - Alphabet Inc., (GOOG, GOOGL), the parent company of Google, Thursday reported an increase in profit for the second quarter, driven mostly by increase in search and advertising revenues. Earnings and revenues for the quarter trumped Wall Street expectations, sending shares of the company up by 3 percent in the after-hours trading.

"Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video. We continue to invest responsibly in support of our many compelling opportunities," said Ruth Porat, CFO of Alphabet.

Last August, Google announced its plans to create a new public holding company, Alphabet, and a new operating structure.

Alphabet's second-quarter profit rose to $4.88 billion or $7.00 per share from $3.93 billion or $4.93 per share last year.

Adjusted earnings for the quarter rose to $8.42 per share from $6.99 per share last year. On average, 37 analysts polled by Thomson Reuters estimated earnings of $8.03 per share for the quarter.

Revenues for the quarter grew 21 percent to $21.50 billion from $17.73 billion last year. Analysts had a consensus revenue estimate of $20.76 billion for the quarter.

The company said aggregate paid clicks increased 29 percent year-over-year and 7 percent from last quarter. Paid clicks on Google websites increased 37 from last year and 9 percent from previous quarter.

Meanwhile, aggregate cost-per-click dropped 7 percent from last year's second quarter and 1 from prior quarter.

GOOG closed Thursday's trading at $745.91, up $4.14 or 0.56% on the Nasdaq. The stock further gained $21.62 or 2.90% in the after-hours trading.