Microsoft Share Surge On Earnings Beat

microsoft share

Shares of Microsoft traded up by more than four percent during Thursday’s session after the company posted their first fiscal quarter earnings report that beat most expectations.

For the fiscal quarter that ended on September 30, the company had earnings of 84 cents per share beating most estimates of 72 cents per share. Microsoft’s revenue for the first fiscal quarter also came at $24.54 billion compared to most analysts expectations of $23.56 billion.

Microsoft’s recent earnings report exceeded their own targets of getting more than $20 billion in their revenue from their commercial cloud business. This led to analysts projecting a continuous revenue growth for the company in the coming years.

Also for the quarter, the company’s revenue from its Azure business was up by 90% year over year while the subscriptions for its Office 365 has grown by 42%. According to Microsoft chief executive officer Satya Nadella, the usage of customers who use their Azure cloud computing have double during the quarter. “Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform.” stated Nadella.

Microsoft’s fourth fiscal 2017 quarter which was released this July also beat most earnings estimates. For the previous quarter, the company had earnings of 98 cents per share largely beating estimates of 71 cents per share. Their revenue of $24.7 billion for the fourth fiscal 2017 quarter also beat most estimates of $24.27 billion. Microsoft’s Azure also gained 97% during the first fiscal quarter year over year with the market projecting a bright outlook for their cloud business.

Revenue from Microsoft’s other businesses such as the Intelligent Cloud also gained 14% to $6.9 billion for the year while their server products revenue also growing 17%. The revenue of their productivity and business processes also gained 28% to $8.2 billion supported by an increase of ten percent in the price of their Office commercial products.

The revenue of the company from their gaming business which declined during the fourth fiscal quarter by 29 percent due to weak Xbox sales have recovered slightly this first fiscal quarter by 1% to $1.9 billion. Revenue from Microsoft’s gaming business is expected to pick up this coming quarter as the company releases its Xbox One X console during the first week of November.

The company was able to return around $4.8 billion in capital to its shareholders during the first fiscal quarter through dividends and share buybacks. Microsoft also boosted its quarterly dividend by 8% to 42 cents per share for the quarter.

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