Technology
Friday, April 26th, 2024 4:14 pm EDT
Key Points
- Market reaction: Alphabet shares surged by 10% after the company’s first-quarter results exceeded expectations, including better-than-anticipated revenue and earnings, and the announcement of its inaugural dividend and a $70 billion buyback.
- Financial performance: Alphabet reported revenue of $80.54 billion, marking a 15% increase from the previous year and surpassing analyst expectations. Earnings per share at $1.89 also exceeded Wall Street estimates.
- Strategic moves: Alphabet’s board authorized a dividend of 20 cents per share to be paid on June 17, with plans for future quarterly cash dividends. Additionally, the company approved a $70 billion stock repurchase, indicating confidence in its financial position and commitment to returning capital to shareholders.
Alphabet made waves in the market as its shares surged by 10% following the release of its first-quarter results, which exceeded expectations and marked the company’s debut dividend announcement alongside a $70 billion stock repurchase plan. Revenues reached $80.54 billion, exhibiting a robust 15% surge compared to the previous year, outstripping analysts’ forecasts of $78.59 billion. Earnings per share at $1.89 also surpassed Wall Street estimates of $1.51, bolstering investor confidence. The company’s decision to issue a dividend of 20 cents per share on June 17, with plans for future quarterly dividends, along with the authorization of a substantial buyback, further buoyed market sentiment. Analysts praised Alphabet’s performance, highlighting its strong growth trajectory, particularly in YouTube advertising and Google Cloud revenue, while effectively managing investments, efficiency, and capital returns. Barclays, Oppenheimer, and Morgan Stanley analysts expressed optimism, with price target upgrades ranging from $195 to $205, reflecting confidence in Alphabet’s core growth prospects and strategic initiatives. JPMorgan and Evercore ISI also revised their price targets upwards, underscoring the market’s positive outlook on Alphabet’s continued momentum and financial strength in navigating evolving market dynamics.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/26/alphabet-stock-up-on-strong-earnings-first-ever-dividend-buyback.html
