Alphabet jumps more than 4 percent after big earnings beat

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Google CEO Sundar Pichai speaks onstage during the annual Google I/O developers conference in Mountain View, California, May 8, 2018.

Google parent company Alphabet just reported its second quarter earnings and the stock popped after-hours on the results.

Here are the most important numbers:

— Earnings per share (adjusted): $11.75 vs $9.59 expected by a Thomson Reuters consensus estimate

— Revenue: $32.70 billion vs $32.17 billion expected by a Thomson Reuters consensus estimate

The stock soared more than 5 percent after-hours, and is now up about 4 percent.

The European Union just slapped the company with a massive $5 billion fine for competition abuses related to its Android phone software, which showed up as a separate operating expense line on its income statement, affecting its non-adjusted earnings per share. Including the fines, Alphabet’s EPS was $4.54.

As usual, Google’s advertising business accounted for most of its revenue, hitting $28 billion in the second quarter. Meanwhile, its “other revenues,” which include its cloud business and hardware sales, was $4.4 billion.

Alphabet also breaks out the revenues and losses for its “Other Bets,” like healthcare company Verily, internet service provider Fiber, and self-driving car company Waymo. Other Bets posted Q2 revenue of $145 million on operating losses of $732 million.

Google’s traffic acquisition costs, which includes the money it pays to phone manufactures, like Apple, to use its services, like search, was $6.4 billion, or 23 percent of its advertising revenues. That’s down from 24 percent last quarter, and aligns with Alphabet CFO Ruth Porat’s advisement last quarter that the TAC as a percentage of revenue would slow beginning in Q2.

Capital expenditures jumped to $5.5 billion — nearly double last year’s figure of $2.8 billion.

This story is breaking — refresh for updates.

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