Microsoft outperformed even the pre-pandemic expectations according to the latest financial report.
Microsoft reported earnings of $10.75 billion - it means an EPS of $1.40. It exceeded even the profits from the same period last year: $30.57 billion in revenue and an EPS of $1.14. According to FactSet estimates, analysts were looking for $1.27 per share and revenue of $33.76 billion.
Microsoft’s Intelligent Cloud division was the engine that made the stock grow, as more and more companies moved their resources to third-party cloud operators. It represents 25% of the latest revenue.
Predictions about the next quarter are already out. According to Microsoft’s CFO Amy Hood, the expected revenue oscillates between $35.85 billion to $36.8 billion. Also, an increase in capital expenditure spending is in sight "to support growing usage and demand for our cloud services." The usage of Azure cloud-computing business and Teams will change as more and more people are working from home. Azure sales grew 59% since last year, providing revenue of $12.28 billion. The Productivity & Business Solution division, which includes LinkedIn, grew to $11.75 billion, overcoming the analysts' expectations of $11.53 billion.
Microsoft gained more than 2% in after-hours trading. This year, the stock went 12.5%, with 4.5% during yesterday’s regular trading hours alone. USA500 lost more than 11% since the beginning of the year.
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Sources: finance.yahoo.com, marketwatch.com
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