Google earnings crush targets and the company will buy back $7 billion of stock

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Google topped Wall Street financial targets in the third quarter and authorised a $7 billion stock repurchase.

Google’s stock barely budged in after-hours trading, rising about 1% despite the strong results.

Here are the key numbers:

Revenue: $18.3 billion net revenue versus analyst expectations of $18 billion, up 21% year over year.

EPS (adjusted): $9.06 versus analyst expectations of $8.64 per share.

Revenue in Alphabet’s Other Bets was up to $197 million for the third quarter, from $141 million a year ago. While losses were hefty — $865 million — they were down from last year’s $980 million.

The $7 billion buyback is only the second in the company’s history, and is larger than the $5 billion buyback the company announced last year.

Two of the more important numbers Google reports each quarter are cost per click, which is how much Google can charge for its ads, and paid clicks, which is how many times people click those ads.

In the third quarter, aggregate paid clicks were up 33% versus an expected 26% — a 9% change from a year ago — and cost per click was down 11% versus an expected 4.8%. The decline in CPC was consistent with Q3 2015.

Google headcount increased by 3,378 in last three months, to 69,953 employees.

Business Insider will be covering the earnings report and conference call, so hit refresh or click here for the latest details.

Alphabet’s stock reached an all-time high earlier this week after favourable reviews of its new Pixel phone.

But the various Other Bet companies that operate under the Alphabet umbrella are showing signs of trouble. On Tuesday, Google Fibre, the high-speed internet access service, halted plans to expand to several cities and said it was laying off 9% of its staff.

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