Alphabet Hit By Higher Tax but Succeeds In Broadening Business
Jan, 27th 03:57
Shares of Alphabet Inc. fell as much as 3% before retreating in extended trading on Thursday after the company reported weaker-than-expected fourth-quarter earnings.
The Google and YouTube parent said revenue for the period rose to $26.06 billion which topped analyst expectations of $20.6 billion. The company succeeded in diversifying its business beyond advertising with revenue from other business including hardware, app sales and the cloud business climbed 62 percent to $3.4 billion.
However, a higher tax rate of 22 percent, compared to 19 percent for the year overall, caused Alphabet’s earnings to miss forecast. The company announced net income of $5.3 billion, or $7.56 a share, compared with $6 billion, or $7.06 a share one year ago. Excluding one-time items, earnings came in at $9.36 a share, narrowly below consensus estimate of $9.64.
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