Google Parent Alphabet Q3 Profit, Revenues Top Street

(RTTNews) - Alphabet Inc., (GOOG, GOOGL), the parent company of Google, Thursday reported a jump in third-quarter profit, largely driven by increase in search and advertising revenues. Earnings and revenues for the quarter trumped Wall Street expectations.

Alphabet's third-quarter profit rose to $5.06 billion or $7.25 per share from $3.98 billion or $5.73 per share last year.

Adjusted earnings for the quarter rose to $9.06 per share from $7.35 per share last year. On average, 37 analysts polled by Thomson Reuters estimated earnings of $8.64 per share for the quarter.

Revenues for the quarter grew 20 percent to $22.45 billion from $18.68 billion last year. Analysts had a consensus revenue estimate of $22.05 billion for the quarter.

The company said aggregate paid clicks increased 33 percent year-over-year and 9 percent from last quarter. Paid clicks on Google websites increased 42 from last year and 11 percent from previous quarter.

Meanwhile, aggregate cost-per-click dropped 11 percent from last year's third quarter and 5 percent from prior quarter.

"We had a great third quarter, with 20% revenue growth year on year, and 23% on a constant currency basis. Mobile search and video are powering our core advertising business and we're excited about the progress of newer businesses in Google and Other Bets," said Ruth Porat, CFO of Alphabet.

Last year, Google announced its plans to create a new public holding company, Alphabet, and a new operating structure.

GOOG closed Thursday's trading at $795.35, down $3.72 or 0.47% on the Nasdaq. The stock, however, gained $2.21 or 0.28% in the after-hours trading.