Investing.com – Class A shares of Alphabet, the corporate parent of search giant Google, were falling after hours Monday after the company reported first quarter that beat analysts’ expectations but revenue that fell short of forecasts.
Alphabet (NASDAQ:) shares fell 4.6% after hitting new closing and 52-week highs in regular trading on a day when the and the Nasdaq finished at record highs.
Alphabet reported earnings per share of $11.90 on revenue of $36.34 billion. Analysts polled by Investing.com had forecast earnings of $10.53 on revenue of $37.3 billion.
The earnings were down 10.7% from a year ago because of a $1.7 billion fine levied by the European Commission, charging agreements that Google had with AdSense for search partners infringed European competition law. Without the fine, Alphabet would have earned 11.50 a share.
A year ago, Alphabet earned $13.33 on revenue of $31.15 billion. The company had reported earnings of $12.77 on revenue of $39.28 billion in the fourth quarter of 2018.
Total revenue grew 17% year-over-year to $36.33 billion, but investors slammed the shares because the gain in the first quarter of 2018 was 26%. In addition, the operating margin fell to 18% from 25% a year earlier. Most of the decline was due to the EU fine.
Google advertising revenue grew 15.3% to $30.72 billion.
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