This article summarizes Google earnings for the second quarter of the company's fiscal year.
Alphabet (GOOG) Google's parent company, reported earnings after the market close today, July 24, 2017. According to data compiled from Bloomberg, Wall Street analysts were expecting GAAP EPS of $4.46 per share on revenue of $20.9 billion. Here is a high-level summary of Google's earnings from the Q2, 2017 report:
Google's Q2 GAAP EPS (Diluted Net Income per Share): $5.01 per share including EU fine
Google's Non-GAAP EPS (Adjusted Net Income Per Share): $8.90 per share excluding EU fine
Google's Revenue: $26 billion including the EU fine
In the company's quarterly report, the CFO made the following statement:
Effect of Fine by EU Officials on Google Earnings
Alphabet shareholders have had a tumultuous road this year. At the beginning of this year, big YouTube advertisers began pulling their advertisements from the popular video platform after discovering ads playing next to videos promoting hate and terror.
Then, last month, EU regulators fined Alphabet $2.7 billion (USD) after accusing the company of promoting its own shopping services over competitors in search results. Unfortunately for Google, the EU ruling opens the door to its competitors taking additional legal action over the allegations. Of course, Google is not the only American tech company to face such allegations by EU regulators. Nonetheless, this recent, record-breaking fine surely sets a precedent for tech companies going forward, and Alphabet shareholders should be concerned by such bold governmental pressures in the EU business environment.
Even with these issues taken into consideration, Google maintained significant growth in its operating performance compared to previous periods. All things considered, the stock appears fairly valued and we will retain from adding it to either our Bullish List or our Bearish List.