Microsoft Beats Q4 Revenue Expectations But Earnings Fall Short 913 Shares Share on Facebook Share on Twitter
Microsoft announced quarterly earnings on Tuesday that met revenue expectations, but missed on earnings. The company’s shares initially fell in after-hours trading but rebounded to trade slightly higher.
The company reported $23.38 billion in revenue and earnings per share of $0.55. Analysts had been expecting around $23 billion in revenue and earnings of about $0.60 per share.
The report is Satya Nadella’s second as CEO of Microsoft after taking the top job in February, having led the company’s cloud and enterprise side.
Among the bright spots fro Microsoft, advertising revenue from the company’s Bing search engine grew 40% and its overall share of U.S. search rose 19.2%. Revenue from Microsoft’s cloud division, which has been of particular focus for the company, jumped 147%.
“We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution,” Nadella said in a press release. “I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate.”
Microsoft recently completed its acquisition of Nokia’s devices and services business. That area lost $0.08 per share for Microsoft. The company missed profit expectations by $0.05 cents per share
“I don’t think anyone should be surprised by this — if the Nokia acquisition is going to work out well, it’s going to take a while. Still looking like a very big ‘if’, though,” tech journalist John Gruber wrote in a blog post after the earnings announcement.
Nadella is in the midst of making major changes to one of the world’s biggest and most entrenched technology companies. Microsoft is still a major player in the PC software market, but has been slow to change with the times. Nadella has said he wants to “reinvent productivity,” by embracing a future in which mobile and cloud computing lead the technology industry.
Changing a company as big as Microsoft does not necessarily mean growth as it seeks to contract in areas that are not apart of Nadella’s vision. The company recently announced that it will cut 18,000 jobs this year.
Posted by : Gizmeon