Microsoft Outperformed Wall Street’s Expectations

Microsoft Outperformed Wall Street’s Expectations

On 31st January 2018, Microsoft released its quarterly earnings report and from all indications, the achievements beat Wall Street’s expectations. The earnings reported per share were $0.96 which was higher than the expected $0.86.

Microsoft restricted Bitcoin payments in its App store (update followed)
Microsoft Works With Israel`s Biggest Bank to Offer Blockchain
Ovamba & Microsoft Join Forces to Innovation Solutions for SMEs

On 31st January 2018, Microsoft released its quarterly earnings report and from all indications, the achievements beat Wall Street’s expectations. The earnings reported per share were $0.96 which was higher than the expected $0.86. The revenue earned was $28.92 billion which was still higher than the expected $28.39 billion. Also reported was a loss of $0.82 per share. This was attributed to the new tax bill which required a one-time charge of $13.8 billion.

Some sectors of the company did better than others. Among the best performers were LinkedIn, Office 365 Cloud Suite and Microsoft Office. These compose the segment known as the Microsoft’s productivity and Business Processes segment. This segment was reported to have grown by 25% compared to a similar time in 2016. Office 365 was reported to have 29.2 million subscribers.

Next in performance was the Intelligent Cloud Segment which grew by 15%. This is made up of the Azure cloud platform and the Microsoft’s Server software. Specifically, Azure’s revenue doubled from the last year’s quarter at the same time.

The gaming segment’s revenue went up by 8% compared to 2016’s final quarter. Microsoft attributed this to the launch of the Xbox One video game console. The revenue from the More Personal Computing segment was also reported to have increased but by only 2%. This segment is made up of Xbox, Surface, Windows and other products.

The Surface hardware business revenue increased only slightly by 1%. This was contrary to expectations considering the fact that Microsoft had several devices (laptops and tablets) released during the holidays.

Only one segment was reported to have let Microsoft down and taken a dip. This is the Windows Commercial business and cloud services associated with it whose revenue decreased by 4% compared to a similar time last year. Microsoft blamed this on a large deal they had made the year before.

Right now, the Microsoft stock price has reduced by 1% to $95 per share.

COMMENTS

WORDPRESS: 0