Alphabet Q3 EPS Misses at $2.67 as Revenue Falls Short of $128.22B Estimate
GOOG is trading near its 52-week low of $267.17 (9.0% above the low).
Summary
Alphabet posted Q3 adjusted EPS of $2.67, well below the $3.02 consensus and down from $3.10 a year ago. Revenue rose 24.7% to $127.58 billion but still came in under the $128.22 billion analysts expected. Reported EPS was $2.12 and net income was $26.47 billion. This is the third straight quarter of EPS misses after June's $2.85 vs $2.89 and March's $2.62 vs $2.63, and it lands alongside the after-hours ad revenue miss that already pushed shares down 7%. Seven analysts cut estimates in the last 30 days, so the bar was already drifting lower and they still missed it. The company's CFO said the ramp of the Google TPU business will pressure free cash flows, while the Google business chief said FX was the biggest driver of the Search deceleration from the second to the third quarter and that strong growth in AI Mode queries affected Search revenue.
At the time of this announcement, GOOG was trading at $291.10 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $267.17 to $404.47. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.