Google Parent Alphabet Q1 Revenue Misses Street, Shares Down 7%

(RTTNews) - Alphabet Inc. (GOOG, GOOGL), the parent company of Google, Monday reported a first-quarter profit that trumped Wall Street estimates, however, shares fell 7% in extended hours after revenues fell short of expectations.

Alphabet reported first-quarter profit of $6.66 billion or $9.50 per share, compared with profit of $9.40 billion or $13.33 per share last year.

The company was hit with a $1.7 billion fine from the European Commission in the quarter. Excluding the fine, net income for the quarter was $8.34 billion or $11.90 per share. On average, 31 analysts polled by Thomson Reuters estimated earnings of $10.58 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter jumped 17 percent to $36.34 billion from $31.15 billion last year. Analysts had a consensus revenue estimate of $37.34 billion for the quarter.

Google advertising revenues rose to $30.72 billion from $26.64 billion last year, while Google other revenues increased to $5.45 billion from $4.35 billion.

Paid clicks on Google properties jumped 39 percent from last year but dropped 9 percent from previous quarter. Meanwhile, cost-per-click dropped 19 percent from a year ago but rose 5 percent from prior quarter.

"We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus last year, or 19% on a constant currency basis," said CFO Ruth Porat. "We remain focused on, and excited by, the significant growth opportunities across our businesses."

GOOG closed Monday's trading at $1,287.58, up $15.40 or 1.21%, on the Nasdaq. The stock, however, slipped $92.34 or 7.17% in the after-hours trade.