Alphabet Inc. (NASDAQ: GOOGL) reported first-quarter 2016 results after markets closed Thursday. The search engine behemoth reported adjusted diluted earnings per share (EPS) of $7.50 on revenues of $20.58 billion. In the year-ago quarter Alphabet/Google posted EPS of $6.47 on revenues of $17.26 billion. Analysts were estimating EPS of $7.97 on revenues of $20.37 billion.
The Google segment posted revenues of $20.09 billion, up from $17.18 billion a year ago. Operating income rose from $5.19 billion to $6.27 billion. The operating loss on other (Bets) revenues totaled $802 million, up from $633 million in the year ago quarter.
Revenues at Google websites rose 20% to $14.33 billion and Google Network revenues rose 3% to $3.69 billion. Ad revenues rose 16% to $18.02 billion.
Traffic acquisition costs paid to Google Network members rose to 70% of Network revenues, or $2.57 billion. Payments to distribution partners totaled $1.22 billion, about 8% of websites revenues. Total traffic acquisition costs rose to $3.79 billion but were 1 point lower as a percentage total ad revenues.
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Paid clicks on Google websites were up 38% year over year by down 4% sequentially. Paid clicks on the Network members sites were up 2% year over year and 4% sequentially. Aggregate cost per click fell 9% compared with the year ago quarter and was flat sequentially.
Capital spending totaled $6.27 billion in the quarter, up from $5.19 billion a year ago.
Alphabet did not provide a forecast, but the consensus second quarter estimates call for EPS of $8.22 on revenues of $20.82 billion. For the full year analysts forecast EPS of $34.53 on revenues of $87.11 billion.
Shares traded down about 5.3% at $740.00 in after-hours trading. The 52-week range is $532.24 to $810.35, and shares closed Thursday at $780.00. Thomson Reuters reported a consensus price target of $930.93 before the earnings report.
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