Cryptocurrency NewsTop News

Microsoft Earnings, Revenue Beat in Q4, But Cloud Revenue Slows

imageStock Markets4 hours ago (Jul 22, 2020 04:22PM ET)

(C) Reuters. Microsoft Earnings, Revenue Beat in Q4

By Yasin Ebrahim – Microsoft (NASDAQ:MSFT) on Wednesday reported fourth-quarter earnings and revenue that beat consensus estimates, but signs of slowing quarterly cloud revenue weighed on sentiment.

Microsoft shares lost 2.8% in after-hours trade following the report.

The company announced earnings per share of $1.46 on revenue of $38.03B. Analysts polled by anticipated EPS of $1.38 on revenue of $36.43B.

Revenue in productivity and business processes was up 6% to $11.8 billion and its intelligent cloud business, which includes cloud business Azure, grew 17% to $13.4 billion.

The company said Azure grew 47% in the quarter, down from a growth rate of 59% in the third quarter of last year.

“In the productivity and business processes and Intelligent cloud segments, cloud usage and demand increased as customers continued to work and learn from home. Transactional license purchasing continued to slow, particularly in small and medium businesses, and LinkedIn (NYSE:LNKD) was negatively impacted by the weak job market and reductions in advertising spend,” Microsoft said.

Revenue in personal computing was up 14% to $12.9 billion as the Windows operating system, surface, and gaming benefited from “increased demand to support work-, play-, and learn-from-home scenarios, while Search was negatively impacted by reductions in advertising spend,” it added.

Microsoft shares are up 34% from the beginning of the year, still down 2.08% from its 52 week high of $216.35 set on July 9. They are outperforming the S&P Global (NYSE:SPGI) 100 which is up 3.29% from the start of the year.

“Microsoft’s earnings momentum will continue as it expands its market share in the cloud-computing market while maintaining its leading position with legacy software products such as Windows and Office,” analyst Haris Anwar said.”The company’s diversified business model makes it a great defensive play for investors, while helping the company achieve sustained, double-digit growth in revenue, earnings per share and free cash flow. The cloud computing segment alone is big enough to drive the company’s revenue growth for the next three to four years.”

Stay up-to-date on all of the upcoming earnings reports by visiting’s earnings calendar

Microsoft Earnings, Revenue Beat in Q4, But Cloud Revenue Slows

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!