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Key Takeaways
- Google parent Alphabet saw its shares skyrocket in extended trading Thursday after the tech giant reported first-quarter results well above expectations.
- The company announced its first-ever dividend of 20 cents per share, with the first payment June 17 to shareholders of record as of June 10.
- Alphabet’s board also approved stock buybacks of up to $70 billion.
Google parent Alphabet (GOOGL) saw its shares jump over 14% in extended trading Thursday as the tech giant reported first-quarter results well above analysts’ expectations, as well as plans to distribute its first-ever dividend.
Alphabet reported revenue rose 15% year-over-year to $80.54 billion, above analyst estimates compiled by Visible Alpha of $78.8 billion. Alphabet’s profit of $23.66 billion, for diluted earnings per share of $1.89, beat estimates of $18.95 billion, or $1.51 per share.
For the first time in the company’s history, Alphabet’s board announced the approval of a dividend program, with a dividend of 20 cents per share to be paid on June 17 to shareholders of record as of market close June 10.
“Our results in the first quarter reflect strong performance from Search, YouTube and Cloud,” Alphabet Chief Executive Officer Sundar Pichai said. “We are well under way with our Gemini era and there’s great momentum across the company. Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation.”
| Q1 2024 Actuals | Analyst Estimates for Q1 2024 | Q1 2023 | Year-over-year (%) change | |
|---|---|---|---|---|
| Revenue | $80.54 billion | $78.8 billion | $69.79 billion | 15.4% |
| Diluted Earnings Per Share | $1.89 | $1.51 | $1.17 | 61.5% |
| Net Income | $23.66 billion | $18.95 billion | $15.05 billion | 57.2% |
A massive stock buyback program was also announced, with the company’s board approving $70 billion to repurchase the company’s own shares.
After falling close to 2% to $156 in Thursday’s regular session, Alphabet shares skyrocketed 14.3% in extended trading to $178.25 as of 4:45 p.m. ET after the report was released.