Alphabet, even with record EU fine, remains a money machine

From CNET: Alphabet, the parent of Google and one of the most powerful companies in the world, is fighting a big antitrust battle in Europe and other fronts. Even so, it's still a cash cow.

Last month, the European Commission for the first time called Google's search engine a monopoly and fined the company $2.74 billion for favoring its shopping ads over those of competitors. Google is expected to appeal the ruling, but in the meantime, it's taking the hit in its finances and set aside those funds for the fine. Google's chief accountant Amie Thuener explained the math on June 30.

Still, in the quarter ended June 30, Alphabet beat analyst estimates for sales and profit. Earnings per share were $5.01. Analysts originally expected profit would be $8.25 per share, but cut that number almost in half to $4.49 to factor in the fine, according to Reuters estimates.

Alphabet also racked up $26.01 billion in sales. That's up 21 percent from a year ago and better than analyst forecasts of $25.6 billion.

"We're still early in our analysis of the decision and next steps," Ruth Porat, Alphabet's finance chief, said on a conference call with analysts in reference to the antitrust case in Europe. "The main thing is we're very focused on helping users and advertisers and are reviewing our options." She said she couldn't comment further because it's an ongoing legal matter.

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