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Google parent alphabet stock tumbles after rare Q1 EPS miss, huge stock buyback program

Benzinga Real-time News ·  Apr 26, 2022 23:25  · Earnings

$Alphabet-A(GOOGL.US)$ reported Q1 revenue of $68.01 billion, up 23% year-over-year and 26% in constant currency terms. The consensus was $68 billion.

Google parent clocked $39.62 billion (+24.3% Y/Y) in revenue from the 'Google search and other' segment, $6.87 billion (+14.4% Y/Y) from YouTube ads, $8.17 billion (+20.2% Y/Y) from Google Network, totaling to $54.66 billion from Google advertising. 

The search giant reported $6.81 billion from 'Google other' and $5.8 billion (43.8% Y/Y) from Google Cloud.

Google's traffic acquisition costs grew by 23.5% Y/Y to $1.99 billion. Its employee headcount increased by 20,000 Y/Y to 163,906.

EMEA revenues were $20.32 billion, APAC was $11.84 billion, and the U.S. generated $31.74 billion in revenue.

Sundar Pichai-led company clocked an operating income of $20.09 billion with an operating margin of 30%, which remained flat versus last year. Q1 adjusted EPS of $24.62 missed the consensus of $26.11, a rare miss after seven quarters of consistent beat.

Alphabet's board has authorized a huge stock buyback program of $70.0 billion of its Class A and Class C shares, representing about 4% of its market cap based on the last closing price.

The company ended Q1 with $133.97 billion in cash and equivalents, down from $139.65 billion last in Q4. It generated an operating cash flow of $25.11 billion, up from $19.30 billion last year. It spent $13.30 billion in Q1 for stock buyback and generated a free cash flow of $15.32 billion.

Price Action: GOOG shares are down 5.11% to $2,268 in the after-hours session on the last check Tuesday.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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Comment(3)

  • user-avatar

    Nothing is certain nowadays. Great stocks get hit by consumer spending n behaviour.

    Apr 26, 2022 23:38
  • user-avatar

    shares buyback...positive future..no worry

    Apr 26, 2022 23:45
  • user-avatar

    still great numbers but can't seem to satisfy the wall street Elites with all the inside information they have. Sick and tired that the shorts and insiders screw the average investors and the SEC never does anything about it.

    Apr 27, 2022 00:13

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