Alphabet reported second-quarter earnings that beat analysts’ estimates. The parent company of Google also revealed its $25 billion additional stock buyback plan.
Alphabet’s adjusted earnings for the quarter came in at $14.21 per share, wee above the $11.30 per share expected by analysts surveyed by Refinitiv.
Total revenue of $38.94 billion also exceeded analysts’ estimate of $38.15 billion.
Even traffic acquisition costs of $7.24 billion for the tech giant were lower than the $7.27 billion expected, according to StreetAccount. On the other hand, Google reported advertising revenue of $32.6 billion for the second quarter, higher than the $28.09 billion of the year-ago quarter. Traffic acquisition costs incurred as a percentage of Google advertising revenues was slightly lower this year compared to the previous year’s quarter.
While cost-per-click on Google properties declined -11% year-over-year in Q2, paid clicks on Google properties surged + 28% over the same period.
Alphabet also said that its board of directors have approved a repurchase of up to an additional $25 billion of its Class C capital stock. During a call with analysts, CFO Ruth Porat indicated that the additional capital would go towards bolstering growth and acquisitions and investments.