Microsoft, here are lights and shadows of the quarterly
Microsoft's second quarter accounts exceed expectations but the XBox decline weighs on. Here are numbers, comments and scenarios
Record-breaking quarterly for Microsoft.
The Redmond giant has beaten Wall Street's expectations in terms of revenue and earnings, as the decline in PC sales resulting from a global chip shortage was more than offset by a boom in cloud services.
In its fiscal fourth quarter, second quarter calendar year, the software and hardware giant reported an adjusted earnings per share of $ 2.17, better than the 1.92 expected by the consensus; turnover amounted to 46.15 billion, compared to an estimated 44.24 billion, and up 21% on an annual basis. Net income jumped 47%.
However, Microsoft's afterhours shares drop nearly 3% after the company reported a decline in sales of content and services for the Xbox games console in the fourth quarter of its fiscal year 2021, which fell 4% in the last three months while a year ago they had registered a + 65%.
REVENUE GROWS
Sales in the three months ended June reached $ 46.2 billion, up 21% from the previous year, beating analyst consensus by about $ 2 billion, according to Refinitiv's IBES data.
"Our results show that when we perform well and meet customer needs in different ways in large and growing markets, we generate growth," Satya Nadella, CEO of the company, said in a statement.
AND THE PROFITS
In the last three months of its fiscal year, the US tech firm saw earnings increase to $ 16.46 billion, or $ 2.17 per share, from $ 11.20 billion, or $ 1.46 per share. , from the same period last year. While expectations were for earnings per share of $ 1.92 on a turnover of $ 44.24 billion.
WELL MICROSOFT AZURE
The Intelligent Cloud segment saw revenues rise to $ 17.38 billion, above expectations of $ 16.33 billion.
Microsoft has seen growth for its cloud computing business of 30% ( although this area is still suffering from the loss of the $ 10 billion Jedi maxi contract over 10 years for the Pentagon cloud infrastructure) .
Leading the sector is Azure, the company's cloud service, which saw sales grow by 51% in the quarter, exceeding expectations by + 45.3%; However, Microsoft did not provide Azure revenue in dollars.
UP ALSO OFFICE AND LINKEDIN
The Productivity and Business segment, which contains Office, Dynamics and LinkedIn, contributed revenues of 14.69 billion, up 25% and above the expected 13.93 billion. While the personal computing sector, which also contains Windows and gaming, saw revenues rise by more than 9% to 14.09 billion dollars, slightly exceeding analysts' expectations for 13.74 billion.
Sales of new Windows installations declined slightly as a shortage of chips and supply chains prevented new computers from entering the market.
WHAT HAPPENS TO XBOX-RELATED SALES
While Xbox console sales increased, revenue from gaming content dropped 4%, reflecting how customers stayed at home and played more online a year ago.
THE ACQUISITION OF NUANCE COMMUNICATIONS
Among the events to report in the past three months, Microsoft announced the acquisition of Nuance Communications, the expert in speech recognition programs, for $ 16 billion and the assumption of debt; and presented Windows 11, the new version of its operating system.
FORECASTS FOR THE NEXT QUARTER
More than solid balance sheet result for Microsoft which, in addition to beating estimates, said it expects better than expected earnings and quarterly revenue for its first fiscal quarter.
Regarding the guidance, Microsoft expects revenue for its Productivity and Business Processes segment between 14.5 billion and 14.75 billion, higher than the 14.07 billion expected by the StreetAccount consensus.
For the Intelligent Cloud division, estimates are of a turnover of between 16.4 billion and 16.65 billion, higher than the estimated 15.71 billion. For the More Personal Computing segment, the guidance is between 12.4 billion and 12.8 billion, with the average of the range just below the 12.67 billion expected by the consensus.
CAPITALIZATION
Microsoft's market capitalization stands at nearly $ 2.2 trillion, after climbing nearly 30% so far this year, compared to 18% for the overall S&P 500 index, according to price-based data from Refinitiv Eikon. closing date on Monday, Reuters reports.
THE COMMENT OF THE ANALYSTS
"Microsoft's shares have had a big run since the start of the pandemic and are trading at high multiples," said Haris Anwar, senior analyst at Investing.com, writes Reuters . "After such a powerful rally, its stocks could take a break, especially when investors are still unclear on how the demand landscape will evolve in the post-pandemic environment."
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/microsoft-ecco-luci-e-ombre-della-trimestrale/ on Wed, 28 Jul 2021 13:01:19 +0000.