Alphabet earnings (NASDAQ:GOOG,NASDAQ:GOOGL) were unveiled late in the day on Monday, with the company’s results coming in mixed as its earnings and revenue topped expectations, but its advertising prices decreased and its expenditures increased.
The tech giant said that its fourth-quarter earnings of fiscal 2018 came in at $12.77 per share, beating the $10.82 per share that analysts were calling for, according to data compiled by Refinitiv. The company added that its revenue for the period tallied up to $39.28 billion, beating the $38.93 billion in sales that Refinitiv called for.
Alphabet added that its traffic acquisition costs amounted to $7.44 billion, gaining 15% year-over-year but failing to reach the $7.62 billion that the Wall Street consensus estimate called for, according to StreetAccount. Plus, its cost per click on Google properties, which measures how much the company charges advertisers, fell roughly 29% year-over-year.
The tech company also said that its capital expenditures for the period were above $7 billion, a significant increase from the $5.63 billion that Wall Street called for. Alphabet also announced an operating margin of 21A%, below the 22% margin that was projected and the 23% margin from the year-ago quarter.
The company said its core advertising business saw its revenue grow 20% year-over-year to $32.6 billion, meeting the year-ago quarter’s rate of growth.
GOOGL stock took a hit of 2.6% after the bell following the company’s quarterly earnings results, while GOOG stock was down 2.4% after hours. GOOGL shares had risen more than 2% during regular trading hours, while GOOG stock gained about 2% Tuesday.