Google’s Parent, Alphabet, Misses on Q3 Revenue But Rakes in $9.2 Billion Net Profit

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Alphabet, whose principal business is Google, fell short on the top line in the third quarter of 2018 but dramatically exceeded earnings per share expectations, turning in a net profit of $9.19 billion.

Alphabet Q3 revenue was $33.7 billion, up 21% year over year but below Wall Street consensus estimate of $34.04 billion. Earnings per share of $13.06 widely beat analysts’ EPS forecast of $10.42.

Alphabet stock dropped 3.5% in after-hours trading on the revenue miss. Analysts said Google’s slowing hardware sales in the quarter — ahead of the launch the new Pixel 3 line of smartphones and other products in Q4 — was the key source of pressure on the company’s Q3 revenue.

“Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day,” Ruth Porat, CFO of Alphabet and Google, said in announcing the financial results.

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