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Microsoft
equities traded higher after the software giant reported better-than-expected quarterly results. The company showed strong strength and especially got a boost through the rapid adoption of cloud computing.
For its fiscal second quarter, which ended December 31, Microsoft (ticker: MSFT) reported revenue of $ 43.1 billion, 17% higher than a year ago, with earnings of $ 2.03 per share , with 34%. That easily beats Wall Street’s consensus forecast for revenue of $ 40.2 billion and earnings of $ 1.64 per share.
“What we have seen over the past year is the beginning of a second wave of digital transformation that is spreading every enterprise and every industry,” CEO Satya Nadella said in a statement. “Developing their own digital capabilities is the new currency that is driving each organization’s resilience and growth.”
Chief Financial Officer Amo Hood added that increasing demand for our differentiated supply increased commercial cloud revenue to $ 16.7 billion, which is 34% higher year-on-year. “
Microsoft’s quarterly gaming revenue for the first time amounts to $ 5 billion, driven by 86% growth in hardware revenue for the Xbox, reflecting the launch of a new generation of gaming consoles.
The business increased business in all three product segments from the September quarter, where revenue also exceeded the forecast.
Sales in the Productivity and Business Processes segment (which includes Office and LinkedIn) were $ 13.4 billion, up 13%, above $ 12.75 billion to $ 13 billion.
For Intelligent Cloud, which includes the cloud platform Azure, sales were $ 14.6 billion, up 21%, well above the projected range of $ 13.55 billion to $ 13.8 billion. Azure revenue rose 50% from 48% in the September quarter.
Sales in the More Personal Computer segment, which includes Windows and Surface tablets and computers, were $ 15.1 billion, up 14%, well above the company’s estimate of $ 13.2 billion to $ 13.6 billion. This includes a 40% increase in Xbox content and services.
Surface revenue declined to 3% growth in the quarter, from 37% in the September quarter; the company says the slowdown largely reflects the timing of the year the product was launched, and that it would make sense for investors to look at Surface revenue over the course of the two quarters.
Microsoft said it returned $ 10 billion to shareholders in the quarter, including $ 6.5 billion in share repurchases. The company ended the quarter with $ 132 billion in cash, equivalents and short-term investments, offset by $ 55 billion in long-term debt.
CFO Hood said during a conference with investors that the company expects revenue in the productivity and business processes segment to range from $ 13.35 billion to $ 13.6 billion in March. Intelligent cloud revenue is expected to range from $ 14.7 billion to $ 14.95 billion. More personal computer revenue is expected to range from $ 12.3 billion to $ 12.7 billion. At the top of the range for each segment, revenue for the quarter would be $ 41.25 billion, well ahead of the Street Consensus at $ 38.7 billion. Hood also said the company expects double-digit gains in revenue and operating profit for the full fiscal year ending June 2021.
For the quarter ended September 30, Microsoft posted revenue of 12% to $ 37.2 billion, with earnings of $ 1.82 per share.
In today’s regular session, Microsoft closed 1.2% to $ 232.33, giving the company a market value of $ 1.77 billion, higher than any other company than
appeal
(AAPL). The share has risen by 41% over the past 12 months.
In Tuesday’s late trading, Microsoft rose another 4.8% to $ 243.50.
Write to Eric J Savitz by [email protected]