Microsoft reports 21 percent topline growth even as shares fell after earnings. For access to live and exclusive video from CNBC subscribe to CNBC PRO: [ Ссылка ]
Microsoft shares initially fell before rebounding and rose as much as 1% in extended trading on Tuesday after the software and hardware company issued fiscal fourth-quarter earnings and quarterly revenue guidance that exceeded expectations.
Here’s how the company did:
Earnings: $2.17 per share, adjusted, vs. $1.92 per share as expected by analysts, according to Refinitiv.
Revenue: $46.15 billion, vs. $44.24 billion as expected by analysts, according to Refinitiv.
Revenue rose 21% year over year in the quarter, which ended June 30, according to a statement. Revenue had increased by 19% in the previous quarter. Net income increased by 47%.
With respect to guidance, Microsoft called for $14.5 billion to 14.75 billion in fiscal first-quarter revenue from its Productivity and Business Processes segment, higher than the $14.07 billion StreetAccount Estimate. For the Intelligent Cloud segment, the company sees $16.4 billion to $16.65 billion in revenue, higher than the $15.71 billion consensus. And the More Personal Computing segment guidance was $12.4 billion to $12.8 billion in revenue, with the middle of the range coming in just short of the StreetAccount consensus of $12.67 billion.
In the fiscal fourth quarter, Microsoft’s Intelligent Cloud segment, which includes the Azure public cloud, Windows Server, SQL Server and GitHub, produced $17.38 billion in revenue, up 30% year over year. Analysts polled by StreetAccount had expected $16.33 billion in revenue.
Revenue from Azure, which competes with Amazon Web Services, grew 51% in the quarter, or 45% in constant currency. Analysts had been expecting 45.3% revenue growth from Azure, according to a CNBC consensus, while the StreetAccount consensus was 42%. In the prior quarter, Azure revenue grew 50%. Microsoft does not disclose Azure revenue in dollars.
In the fiscal first quarter, Azure revenue growth in constant currency should remain relatively stable on a sequential basis, Microsoft’s finance chief Amy Hood said on the company’s earnings call.
The Productivity and Business Processes unit, which contains Office productivity software along with LinkedIn and Dynamics, contributed $14.69 billion in revenue, up 25% and above the StreetAccount consensus of $13.93 billion.
Microsoft’s seat growth for commercial Office 365 subscriptions accelerated to 17% from 15%, with the company citing higher revenue per user and better results from products designed for small businesses and front-line workers. The Teams chat and calling app in Office 365 now has 250 million monthly active users, Microsoft said. The premium E5 tier now accounts for 8% of all commercial Office 365 subscriptions, Hood said.
Microsoft’s More Personal Computing segment, which features Windows, as well as devices, gaming and search advertising, generated $14.09 billion in revenue. That’s up 9% and more than the $13.74 billion StreetAccount consensus.
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