Google Parent Alphabet Q3 Profit Misses Street View

(RTTNews) - Alphabet Inc. (GOOG, GOOGL), the parent company of Google, Monday reported a third-quarter profit that missed Wall Street estimates, hurt largely by higher operating costs.

Alphabet reported third-quarter profit of $7.07 billion or $10.12 per share, down from last year's profit of $9.19 billion or $13.06 per share last year. On average, 34 analysts polled by Thomson Reuters estimated earnings of $12.46 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter jumped 20 percent to $40.50 billion from $33.74 billion last year. Analysts had a consensus revenue estimate of $40.30 billion for the quarter.

Google advertising revenues rose to $33.92 billion from $28.95 billion last year, while Google other revenues increased to $6.43 billion from $4.64 billion.

Paid clicks on Google properties jumped 18 percent from last year and 1 percent from previous quarter. Meanwhile, cost-per-click dropped 2 percent from a year ago and increased 3 percent from prior quarter.

"I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud," said CEO Sundar Pichai. "We're focused on providing the most helpful services to our users and partners, and we see many opportunities ahead."

Operating costs for the quarter rose to $31.32 billion from $25.11 billion last year.

GOOG closed Monday's trading at $1,290.00, up $24.87 or 1.97%, on the Nasdaq. The stock, however, dropped $29.00 or 2.25% in the after-hours trade.