How’s Microsoft doing?

27 October 20213 years ago babelfish

Microsoft reported quarterly earnings that exceeded analysts' estimates, thanks to the cloud division. Numbers, comparisons and scenarios

The cloud is Microsoft's primary growth engine.

The tech giant from Redmond beats revenue expectations, posting 22% growth in the quarter.

Microsoft beat analyst expectations for 10 consecutive quarters, and the company's streak continued into the final quarter. This is partly due to its cloud computing business, Finimize points out , which is still benefiting from the work-from-home trend and whose revenue was up 36% over the same period last year.

Its productivity segment, which includes Office 365 and LinkedIn, also increased to record a 22% increase in revenue.

Microsoft stock was up more than 1% in afterhours trading on Tuesday.

All the details on the Microsoft quarterly.

REVENUES GROW

The third quarter of the Redmond company, supported by the leap of the cloud, shows a growth of 22% in revenues equal to 45.3 billion dollars. Operating profit amounted to € 20.2 billion, up 27% while net profit rose 48% to € 20.5 billion.

First quarter earnings stood at $ 20.5 billion, or $ 2.71 per share, compared to $ 1.82 per share a year ago and surpassing the quarterly profit record.

ANALYSTS 'ESTIMATES BEATEN

Analysts on average had expected earnings of $ 2.08 per share on sales of $ 44 billion, according to FactSet.

PUSH THE CLOUD FOR MICROSOFT

Microsoft's Intelligent Cloud segment, which includes Azure Cloud, Business Services, GitHub, SQL Server, System Center, Visual Studio and Windows Server, generated $ 16.96 billion in revenue, up 31% year over year. That's more than the $ 16.51 billion consensus estimate among analysts interviewed by StreetAccount, CNBC notes.

While Microsoft Azure's revenue growth slowed slightly in the quarter, it accelerated from the previous quarter. This time, Azure growth was 48% in constant currency, up from 45% in the previous quarter.

CFO Hood said on Tuesday that for fiscal second quarter, “We expect healthy, across-the-board growth in our Azure consumption business consistent with recent trends and our user activity, while continuing to benefit from the momentum of Microsoft 365 to see a moderation in growth rates given the size of the installation base ".

HOW LINKEDIN AND OFFICE GO

The Productivity and Business Processes unit, which includes Dynamics, LinkedIn and Office, contributed $ 15.04 billion in revenue, a 22% increase and beyond StreetAccount's consensus estimate of $ 14.67 billion.

WELL ALSO WINDOWS

The company's More Personal Computing business, including Windows, devices, games, and search advertising, had revenue of $ 13.31 billion, an increase of 12%.

FORECASTS FOR THE FOURTH QUARTER

Finally, for the fourth quarter, Microsoft expects revenue between $ 50.15 and $ 51.05 billion, higher than the indicative consensus of $ 48.92 billion.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-vanno-i-conti-di-microsoft/ on Wed, 27 Oct 2021 11:47:58 +0000.