Alphabet Gives Green Light to Multi-Billion-Dollar Stock Buyback

Search engine operator Alphabet (GOOG. GOOGL) said that it had authorized a multi-billion-dollar stock repurchase as it posted better-than-expected results for its fiscal second quarter after markets closed on Thursday.

The company reported revenue of $38.94 billion in the three months ended June 30, up from $32.66 billion in the corresponding quarter of the prior year. This comfortably exceeded the consensus estimate of analysts polled by Capital IQ for $38.21 billion.

Feeding into the results was an increase in Google Properties revenues to $27.34 billion from $23.26 billion a year earlier. Google Network Members’ Properties revenues rose to $5.27 billion from $4.83 billion.

Traffic acquisition costs to Google Network Members was $3.62 billion, up from $3.41 billion a year earlier. Traffic acquisition costs to distribution partners was $3.62 billion compared to $3.01 billion a year earlier. Total traffic acquisition costs as a percentage of Google advertising revenue was 22% compared to 23% a year earlier.

Adjusted earnings per share came in at $14.21, up from $11.75 a year earlier and well ahead of the Street’s forecast for $11.46 per share. The company said that on July 24, the board had authorized a repurchase up to an additional $25.0 billion of its Class C capital stock.

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