An earnings thread on HN? Time for Faramir, captain of Gondor to show his quality!
The nominal EPS beat appears massive but an important caveat on that EPS beat: a significant portion of this EPS outperformance stemmed from a non-operational item: an $8.0 billion unrealized gain on a non-marketable equity security, which added $7.7 billion to net income, equivalent to $0.62 per share. Although even without this, they would be beating the consensus estimates
Their Capex went up 43% YoY to $17.20 billion likely from higher investment in AI infrastructure.
The interesting story is their margin expansion. They were consistently at 32% margin for multiple quarters. This time they broke out to 34%
Finally, a new $70 billion share repurchase plan and a 5% increase in the quarterly dividend to $0.21 per share.
Nope, they in fact increased headcount YoY. That is covered in a section of the article. "...overall margin expansion this quarter seems more attributable to leverage within Google Services and S&M (sic. sales and marketing) discipline rather than broad-based cost containment..."
The nominal EPS beat appears massive but an important caveat on that EPS beat: a significant portion of this EPS outperformance stemmed from a non-operational item: an $8.0 billion unrealized gain on a non-marketable equity security, which added $7.7 billion to net income, equivalent to $0.62 per share. Although even without this, they would be beating the consensus estimates
Their Capex went up 43% YoY to $17.20 billion likely from higher investment in AI infrastructure.
The interesting story is their margin expansion. They were consistently at 32% margin for multiple quarters. This time they broke out to 34%
Finally, a new $70 billion share repurchase plan and a 5% increase in the quarterly dividend to $0.21 per share.
source: https://signalbloom.ai/news/GOOGL/alphabet-q1-earnings-surge...
disclaimer: I run this site, it was launched on HN recently https://news.ycombinator.com/item?id=43675248