Shares in Google parent company Alphabet are up after the company exceeded Wall Street expectations in the third quarter.
Alphabet posted earnings of $9.57 per share on $27.7 billion in revenue in the third quarter. Analyst surveyed in advance by Yahoo Finance expected Alphabet to make $8.33 per share on revenue of $27.2 billion.
“We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets,” Ruth Porat, CFO of Alphabet said in a statement. “Our momentum is a result of investments over many years in fantastic people, products and partnerships.”
Alphabet shares are up 3 percent in after-hours trading, pushing the stock above $1,000.
The Google business (search, ads, maps, apps, cloud, Play, YouTube, Android, virtual reality, etc.) was responsible for operating profits of $8.7 billion, up from $6.7 billion last year, on $27.5 billion in revenue, up from $22.2 billion a year ago. Advertising continues to be a cash cow for Alphabet, with $24 billion in revenue, up from $19.8 billion at this time last year.
Google’s “Other Bets” division, which includes some of the company’s riskier projects, took a $812 million loss on $302 million in revenue. Those figures are an improvement on last year, when Other Bets took a loss of $861 million on $197 million in revenue.
It’s been a busy quarter for Google. In September, the company announced it signed a $1.1 billion “cooperation agreement” with HTC, the Taiwan-based consumer electronics company, as it looks to amp up its smartphone business. The deal sends “certain” HTC employees to work at Google and gives the search giant a non-exclusive license for HTC intellectual property. Google described the transaction as “continuing our big bet on hardware.”
The company also announced a new slate of smart speakers powered by the Google Assistant, as well as the next generation of its Pixel smartphone. Google this week released the $49 Google Home Mini, the company’s answer to the Amazon Echo Dot, and in December the $399 Google Home Max will hit the streets.
