Satya Nadella, CEO of Microsoft Corp., listens during an interview at The David Rubenstein Show in New York on September 27, 2017.
Christopher Goodney | Bloomberg | fake pictures
Microsoft shares fell as much as 3% in off-hours trading on Wednesday after the company reported better-than-expected fourth-quarter tax earnings that exceeded analyst expectations.
This is how the company did it:
- Profits: $ 1.46 per share, adjusted, versus $ 1.34 per share, as expected by analysts, according to Refinitiv.
- Income: $ 38.03 billion, compared to $ 36.50 billion as expected by analysts, according to Refinitiv.
Microsoft’s overall revenue grew 13% annually in the quarter, which ended June 30, according to a statement. Revenue increased 15% in the previous quarter.
The company’s earnings declined slightly due to a change in Microsoft’s retail strategy. On June 26, Microsoft said it would close its physical stores, resulting in a one-time fee of $ 450 million, or 5 cents a share, before tax.
Microsoft’s smart cloud business segment, which includes Azure public cloud, Windows Server, SQL Server, GitHub and business services, posted $ 13.37 billion in revenue, up 17% year-over-year and above consensus of $ 13.11 billion among analysts surveyed by FactSet. Azure revenue growth slowed to 47% from 59% in the previous quarter. Microsoft does not disclose Azure’s dollar revenue, but said its cloud commercial business exceeded $ 50 billion in revenue for the fiscal year.
The Productivity and Business Processes unit, which contains Office, Dynamics and LinkedIn, contributed $ 11.75 billion in revenue. That’s up to 6% and less than the FactSet consensus of $ 11.91 billion.
The company’s most personal computing unit, which includes Windows, Surface, and Xbox, was $ 12.91. billion in quarterly revenue, which is 14% and above the FactSet consensus of $ 11.48 billion.
In the quarter, Microsoft revealed a plan to shut down its Mixer video game streaming service and announced the acquisitions of CyberX, Metaswitch and Softomotive. Industry research group Gartner estimated that PC shipments, a factor in Microsoft’s Windows sales, grew again year-over-year in the quarter, following a decrease in the first quarter from the pandemic.
Regarding guidance, analysts surveyed by Refinitiv are seeking $ 35.91 billion in revenue for the fiscal first quarter.
Executives will discuss fourth-quarter fiscal results in a conference call with analysts beginning at 5:30 pm ET.
Microsoft shares have risen approximately 34% since the beginning of the year.
This is breaking news. Please check for updates.
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