Microsoft earnings top estimates despite strong dollar PC slump
Microsoft on Tuesday reported earnings that narrowly topped analysts’ expectations, even as results were hurt by a strong dollar and a PC market that has cooled significantly since its pandemic-fueled highs.
Why it matters: Microsoft offers a look into a wide swath of the economy, with its Xbox unit tied to consumer spending, Azure cloud and Office linked to business spending and its Bing business providing insight into online ad spending.
• Revenue was $50.1 billion (up 11% year-over-year and it would have been up 16% had the dollar remained stable).
• Net income was $17.6 billion (down 14% year over year, 8% in constant currency).
• Diluted per-share earnings were $2.35 (down 13%, 7% in constant currency).
• Cloud revenue was $25.7 billion (up 24% year-over-year and up 31% in constant currency).
• Windows revenue from new PC sales, meanwhile, was down 15% year-over-year.
What they’re saying: “In a world facing increasing headwinds, digital technology is the ultimate tailwind,” Microsoft CEO Satya Nadella said in a statement. “In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way.”
• Microsoft said it would give guidance on its current financial outlook during a conference call with analysts set to begin shortly.
Yes, but: Shares of Microsoft fell in after-hours trading, changing hands recently at $244.50, down $6.16, or about 2.5%
Microsoft on Tuesday reported earnings that narrowly topped analysts’ expectations, even as results were hurt by a strong dollar and a PC market that has cooled significantly since its pandemic-fueled highs. Cloud revenue rose significantly, accounting for more than half of total sales.Why it matters: Microsoft offers a look into a wide swath of the economy, with its Xbox unit tied to consumer spending , Azure cloud and Office linked to business spending and its Bing business providing insight into online ad spending .
• Revenue was $50.1 billion (up 11% year -over- year and it would have been up 16% had the dollar remained stable).
• Net income was $17.6 billion (down 14% year over year , 8% in constant currency ).
• Diluted per-share earnings were $2.35 (down 13%, 7% in constant currency ).
• Cloud revenue was $25.7 billion (up 24% year -over- year and up 31% in constant currency ).
• Windows revenue from new PC sales , meanwhile, was down 15% year -over- year .What they’re saying: “In a world facing increasing headwinds, digital technology is the ultimate tailwind,” Microsoft CEO Satya Nadella said in a statement. “In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way.”
• Microsoft said it would give guidance on its current financial outlook during a conference call with analysts set to begin shortly.
