Microsoft stock rose up to 6% in expanded trading on Tuesday after the company reported Azure Cloud revenue growth and quarterly revenue forecasts in the second quarter that exceeded analysts’ expectations.
This is how the company did it:
- Merits: Adjusted for $ 2.03 per share versus $ 1.64 per share as analysts expected, Refinitiv said.
- Revenue: According to Refinitiv, $ 43.08 billion versus $ 40.18 billion as analysts expected.
Microsoft’s annual revenue increased 17% from 12% in the previous quarter, according to a statement.
In terms of forecasts, Microsoft sees third-quarter revenue of $ 40.35 billion to $ 41.25 billion. The middle of the range at $ 40.8 billion implies growth of 16.5% and is above the consensus of $ 38.70 billion among analysts surveyed by Refinitiv.
In the second quarter of the fiscal year, Microsoft’s Intelligent Cloud business was $ 14.60 billion. The segment includes the Azure public cloud, server products such as Windows Server, GitHub and business services. Revenue was up 23% year over year and was above the consensus of $ 13.77 billion among analysts surveyed by FactSet.
According to Microsoft, Azure sales increased by 50%. Analysts had expected growth of around 42%. Microsoft does not report Azure earnings in US dollars.
The More Personal Computing segment, which includes Windows, games, devices, and search advertising, had sales of $ 15.12 billion, up 14% and above the FactSet consensus estimate of $ 13.47 billion. Dollar lay. Technology industry research firm Gartner estimated PC shipments excluding Chromebooks increased 10.7% for the quarter.
The segment’s operating margin decreased from 40% to 34.6% after launching two Xbox video game consoles in November. Analysts surveyed by FactSet had expected a margin of 26% for the segment. The company now has 18 million subscribers to the Xbox Game Pass service for access to dozens of games, up from 15 million in September.
The Productivity and Business Process segment, including Office, Dynamics, and LinkedIn, had sales of $ 13.35 billion, up 13% and more than the consensus of $ 12.89 billion.
In the quarter, Microsoft released $ 500 for Xbox Series X and $ 300 Series S consoles, as well as a small version of its Surface Laptop PC called the Surface Laptop Go. The company also said some of its source code was accessed after the company discovered harmful SolarWinds software in its environment.
Amy Hood, Microsoft’s chief financial officer, said during a conference call with analysts that she expects double-digit revenue growth and “healthy operating margin expansion” for the full fiscal year ending June 30, even after changing the useful life of servers and Coronavirus-related savings.
On Tuesday, Microsoft shares closed at $ 232.33 per share, setting a new all-time high for the first time since September. Excluding the after-hours move, Microsoft shares have risen around 5% since early 2021, while the S&P 500 index is up around 3%.
This is the latest news. Please try again.
Nominations are open to the 2021 CNBC Disruptor 50, a list of private startups that are leveraging breakthrough technology to become the next generation of large public companies. Submit by Friday, February 12th at 3 p.m. EST.