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Google's parent Alphabet shares jump after whizzing past 2Q profit and revenue forecasts

The results come days after the European Commission hit Google with a US$5bn levy for exploiting the dominance of its Android mobile operating system

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Alphabet shares are trading higher in after-hours trade

Shares in Google’s parent Alphabet (NASDAQ:GOOGL) gained ground in after-hours trade after the parent of the powerful search engine trounced Wall Street’s estimates for second-quarter profit and revenue.

Alphabet’s second-quarter results come days after the European Commission hit Google with a US$5bn levy for exploiting the dominance of its Android mobile operating system.

Excluding the impact of the fine, the Mountain View, California-based company’s net earnings swung to US$11.75 per share on revenue of US$32.66bn.

The results whizzed past the consensus estimates of analysts who had penciled in earnings per share of US$9.54 on revenue of US$32.19bn.

As is always the case, Google's advertising group provided the bulk of its revenue, throwing up US$28bn in the quarter.

Revenue from its "other" divisions, which includes its cloud business, swung to US$4.43bn over the period. 

READ: Google hit with record €4.3bn fine from European regulators over Android operating system

Enthused by the results, investors sent Alphabet shares up 4.5% in after-hours trade to US$1,266.

“We delivered another quarter of very strong performance, with revenues of US$32.7bn, up 26% versus the second quarter of 2017 and 23% on a constant currency basis,” said Ruth Porat, chief financial officer of Alphabet and Google, in a statement.

“Our investments are driving great experiences for users, strong results for advertisers and new business opportunities for Google and Alphabet,” she added.

As part of their crackdown, European regulators are forcing Google to stop requiring makers of Android phones to bundle Google’s Search and Chrome apps on mobile handsets that also carry the Google Play store.

Regulators found that Google violated competition rules by preventing phone makers from selling phones that run modified versions of Android software.

Quick facts: Alphabet Inc

Price: 1464.7 USD

Market: NASDAQ
Market Cap: $999.83 billion

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