Microsoft did not convince investors of the quarterly figures published on Tuesday evening. The software giant failed to meet analyst expectations in terms of sales and profits. In the first reaction after hours, Microsoft shares fell about one percent.
Microsoft increased its sales in the fourth fiscal quarter (through the end of June) compared to the same quarter last year by twelve percent to reach $51.9 billion. On the other hand, net income rose just 2 percent to $16.7 billion, or $2.23 per share.
Therefore, analysts’ expectations were not met. Experts had expected adjusted earnings per share of $2.23 from sales of $52.3 billion.
A closer look at the sales development shows that no sector emerged this time and the bank did not meet expectations:
In the growth segment, Intelligent Cloud revenue rose 20 percent to $20.9 billion. The highlight of this division remains the Azure Infrastructure Service and related cloud services, which have increased by 40 percent. It hasn’t changed strongly – but analysts were hoping for more for the entire $21.1 billion sector.
The section about Windows, Surface Books and Xbox calling it “More Personal Computing” couldn’t beat expectations of $14.7 billion with sales growing 2% to $14.4 billion. The “Productivity and Business Processes” segment was slightly below estimates of $16.7 billion on revenue of $16.6 billion.
The weak quarterly season continues with Microsoft’s disappointing numbers. For a more detailed assessment, an earnings call with management should be awaited. However, investors must remain loyal to Microsoft stock for now. You can learn more about Microsoft numbers tomorrow at DER AKTIONÄR.
