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2018.04.2319:43:00UTC+00 Alphabet’s Quarterly Results Gets boost from Strong Ad Sales

Google owner Alphabet Inc. posted first-quarter sales and profit that surpassed financial analysts' projections due to solid advertisement sales and a change in accounting for investment in startups, causing its shares to edge up 1 percent in extended trading.

The results pacified concerns that investment in new ventures was hurting Alphabet's financial outlook. There was also no immediate indications that increasing global privacy concerns could impact profits.

Global sales rose to $31.1 billion, surpassing average analysts' estimate of $30.3 billion. Despite this, operating income margins declined to 22 percent from 27 percent a year prior.

The company's profit margins have declined in recent quarters as it expands in new projects in cloud computing and hardware at its core Google business, despite spending cuts on an unprofitable set of ancillary initiatives.

In general, quarterly profit of $9.4 billion of $13.33 per share, beating estimates of $6.56 billion or $9.28 per share. Around $3.40 of the earnings per share were attributable to a new accounting method for unrealized gains in the company's investments in startups such as Uber Technologies Inc.

Adjusted earnings, excluding the investment-related gains and other items, clocked in at $9.93 per share, surpassing the $9.28 per share consensus. The company's effective tax rate fell to 11 percent from 20 percent a year prior.

Revenue from Google's mobile app store and growth priorities including cloud computing services and consumer devices clocked in at $4.4 billion in the first quarter.

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