Microsoft misses on Q4 earnings expectations, lifts its guidance
Microsoft's figures were weak yesterday, the company missed earnings expectations across the board this time. But investors seem to like the company's forecast, with share price climbing over 5% after-hours.
Disclaimer - Nothing in this post is financial advise
No single segment stood out in the Q4 figures and even the "Intelligent Cloud" segment remained below expectations. Microsoft (Ticker: MSFT) stated that it had to accept revenue losses of around 600 million dollars due to changing exchange rates on a strong dollar. A story we recently heard at nearly every earnings call.
Earnings by numbers:
Revenue was $51.9 billion and increased by 12% vs. an estimated $52.44 billion
Diluted earnings per share were $2.23 and increased by 3% vs. an estimated $2.29
Operating income was $20.5 billion and increased by 8%
Net income was $16.7 billion and increased by 2%
However, the software giant is very optimistic again about the future, which seems to predominate the fact that Microsoft missed its estimates.
“We see real opportunity to help every customer in every industry use digital technology to overcome today’s challenges and emerge stronger,” said Satya Nadella, chairman and chief executive officer of Microsoft.
“No company is better positioned than Microsoft to help organizations deliver on their digital imperative – so they can do more with less.”
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Disclaimer - Nothing in this post is financial advise
Bottom Line
The currency effects are temporary and the company still wants to achieve double-digit growth despite the difficult macroeconomic environment. In addition, demand for Azure, the growth driver, is expected to remain stable. Investors remain loyal to the share.
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