Yahoo Finance Google parent Alphabet's earnings beat expectations, shares rally
Google’s parent company Alphabet (GOOG, GOOGL) reported better-than-expected second-quarter earnings on Monday afternoon several days after EU regulators fined the tech giant for antitrust issues.
Including the $5.1 billion fine from EU regulators, the Mountain View, California-based tech giant reported $4.54 earnings-per-share on revenues of the $32.7 billion. Not including the fine, the company separately reported an adjusted earnings-per-share figure of $11.75, which was stronger than the $9.59 earnings-per-share expected by analysts.
Last week, EU antitrust regulators ruled that Google abused its dominance by forcing device makers to install its search engine and Chrome browser on Android devices. Alphabet plans to appeal the fine.
Google (GOOG) stock was up 4% in after-hours trading.
Even if the penalty ultimately stands, it’s a relatively small amount for Alphabet, which had $102.9 billion in cash, cash equivalents and marketable securities stashed away as of March.
Regardless, the ruling will likely force Google executives to reexamine its approach to Android.
“Overall, it [Android] has created more choice for everyone — not less,” Google CEO Sundar Pichai said during the second-quarter earnings call with analysts on Monday afternoon. “We are analyzing the position. It’s too early to comment or speculate. … There’s more work to be done, and it’ll become clearer as we go along. I’m confident we can find a solution that makes Android available at scale to users everywhere.”
Last week, Pichai penned a blog post cautioning that EU authorities’ decision will “upset the careful balance” Google has struck with its popular Android OS. Pichai’s broad language sparked conversations among tech pundits and analysts that changes could be coming for device makers, third-party app makers and even possibly consumers.
—
JP Mangalindan is the Chief Tech Correspondent for Yahoo Finance covering the intersection of tech and business. Email story tips and musings to jpm@oath.com. Follow him on Twitter or Facebook.
More from JP:
