Google's parent company, Alphabet has just posted its earnings for the second quarter of the year - for the three-month period ending on June 30. And Alphabet smashed analyst expectations. It brought in $32.7 billion in revenue for the quarter, with EPS of $11.75 which beat analysts expectations of $32.1 billion and $9.59 respectively. Operating income for the quarter was $2.8 billion, with an operating margin of 9-percent. That is actually lower than the year-ago period, but that is factoring in the fines from the European Union. Without the fines, it's $7.9 billion in operating income and 24-percent operating margin. Revenue did increase 26-percent compared to the year-ago period, which is up from the 21-percent increase the company did a year ago (when compared to 2016).
Breaking down Alphabet's earnings, Google properties revenue came in at $23.3 billion, with Google advertising revenues coming in at $28 billion, which means that Google segment revenues totaled $32.5 billion. Other bets were around $145 million, which is an increase year-over-year. However the operating loss for other bets came in at $732 million, which is larger than the $633 million loss it had a year ago. Alphabet's "Other Bets" include companies that projects that Alphabet is working on, like those that are in its X lab. Recently a number of companies were spun out of X and made into their own companies. Including Google's Self-Driving Car and Project Loon. These are spun out once Alphabet is sure that the company is able to sustain itself, which includes bringing in revenue and hopefully turning a profit.
Alphabet posted another record earnings for the second quarter, and it is propelling its stock in after hours trading, at the time of this writing, it's up around 5-percent. Bringing Alphabet closer to the $1 trillion market cap. Currently, Alphabet, Amazon, Apple and Microsoft are all in the running to become the first $1 trillion company, and this earnings report may bring Alphabet to that holy grail. Despite the big fine that the European Union gave Google - Alphabet's biggest division - it isn't keeping investors from buying up its stock.