These large-cap compnaies released fourth-quarter 2018 earnings results on Monday.
Shares of Alphabet Inc. (GOOG, Financial) (GOOGL, Financial) dropped 2.72% to $1,101.96 and 3.05% to $1,106.55 in after-hours trading on Monday despite beating consensus estimates for fourth-quarter earnings by $1.91, having posted earnings of $12.77 per diluted share. Earnings increased 31.6% from the prior-year quarter.
Fourth-quarter revenue grew 22% year over year to $39.28 billion, beating expectations by $380 million.
The Mountain View, California-based technology company closed the quarter with operating income of $8.2 billion and an operating margin of 20.9%.
By segment, revenue from Google Properties came in at $27.02 billion, revenue from Google Network Members' Properties were $5.61 billion, revenue from Google Other was $6.49 billion and sales in Other Bets was $154 million.
Google's parent company also recorded the changes in the following key metrics.
Charges for traffic acquisition costs increased 15.3% from prior-year quarter to $7.44 billion and accounted for roughly 23% of total revenues from advertising.
Paid clicks on Google properties jumped 66% from the prior-year quarter while the cost per click on Google properties dropped 29%.
Alphabet's Class C and Class A shares are both above the 200, 100 and 50-day simple moving average lines. The company's market capitalization was roughly $790.81 billion at close on Monday following a 5% growth over the past year. The 52-week range is $970.11 to $1,273.89 for Class C stock and $977.66 to $1,291.44 for Class A stock.
The chart illustrates the trend in the share price of Alphabet's Class C shares over the past year.
In addition, the chart below illustrates the trend in the share price of Alphabet's Class A shares over the past year.
The stock has a price-book ratio of 4.67, a price-sales ratio of 6.27 and a price-earnings ratio of 42.99, which are all above the industry average.Â
While Alphabet has approximately $109.1 billion available in cash on hand and securities and generated roughly $48 billion in cash flow over the last 12 months of operations, it is not paying a dividend.
The recommendation rating for Class C shares is 1.7 out of 5. The average target price is $1,328. The Class A shares have a 1.6 out of 5 recommendation rating and a target price of $1,351.27.
Shares of Gilead Sciences Inc. (GILD, Financial) fell 3.64% to $67.50 in after-hours trading. The global biotechnology company's non-GAAP earnings of $1.44 per share missed estimates by 26 cents.
Revenue of $5.8 billion declined 2.5% from the prior-year quarter. Regardless, the Foster City, California-based biotech company beat expectations by $280 million.
Revenues were shared between total product sales of $5.681 billion and other revenues of $114 million. Sales of Genvoya, which is used to treat HIV, increased 13.8% to $1.206 billion. Sales of Truvada, which is also a therapy for HIV infection, grew 3.3% to $823 million. Epclusa sales, which is used for the treatment of long-lasting hepatitis C, decreased 19.8% to $453 million. Sales of Harvoni, which is also used to treat hepatitis C, declined 64% to $232 million. Sales of the HIV infection controller Descovy jumped 12.6% to $411 million. Sales of the HIV treatment Odefsey increased 37.8% to $448 million. Sales of Biktarvy were $ 578 million. Sales of Yescarta, which is used to treat specific types of non-Hodgkin lymphoma, soared nearly 1,000% to $81 million.
In addition, Gilead Sciences has guided that product sales for 2019 will range from $21.3 billion to $21.8 billion.
The stock is trading below the 200-day simple moving average line, on par with the 100-day line and above the 50-day line. The stock had a market capitalization of approximately $90.62 billion at close on Monday following a 13% decline over the past year. The 52-week range is $60.32 to $84.58.
The stock has a price-book ratio of 3.97 versus an industry median of 4.1, a price-sales ratio of 4.13 and a price-earnings ratio of 58.38 versus an industry median of 28.79.
The company increased the quarterly cash dividend by 10.5% to 63 cents per ordinary share. Gilead will pay the dividend on March 28 to shareholders of record as of March 15. The ex-dividend date is scheduled for March 14. The distribution leads to a forward dividend yield of 3.6%, compared to an industry median of 0.95%.
Disclosure: I have no positions in any securities mentioned in this article.
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