{"id":77072,"date":"2023-10-26T10:37:38","date_gmt":"2023-10-26T14:37:38","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/microsoft-stock-jumps-after-earnings-beat-the-cloud-looks-strong\/"},"modified":"2023-10-26T10:37:42","modified_gmt":"2023-10-26T14:37:42","slug":"microsoft-stock-jumps-after-earnings-beat-the-cloud-looks-strong","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=77072","title":{"rendered":"Microsoft Stock Jumps After Earnings Beat. The Cloud Looks Strong."},"content":{"rendered":"
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\n Microsoft
\n shares traded higher after the company posted better-than-expected financial results for its September quarter, aided by better performance than expected from the company\u2019s cloud computing business.<\/p>\n

The software firm posted revenue of $56.5 billion, up 13% from a year ago, and $2 billion ahead of Wall Street estimates. <\/p>\n

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Profits were $2.99 a share, well ahead of the consensus of $2.65 a share. Importantly, the company\u2019s Azure cloud business grew 28% on a constant currency basis in the quarter, well above the company\u2019s forecast for growth of 25% to 26%; on a GAAP basis Azure grew 29%. The company said Microsoft Cloud revenue was $31.8 billion, up 24%.<\/p>\n

Microsoft shares closed up 3.1% Wednesday, the day after the report.<\/p>\n

In the quarter, the company posted revenue of $18.6 billion for its Productivity and Business Processes segment, up 13% from a year ago, and ahead of its guidance range of $18 billion to $18.3 billion. That includes 15% growth in Office Commercial products.<\/p>\n

Microsoft said its Intelligent Cloud segment, which includes Azure, had revenue of $24.3 billion, up 19%, and well ahead of its forecast range of $23.3 billion to $23.6 billion. Server products and cloud services revenue was up 21%.<\/p>\n

Revenue from the More Personal Computing segment was $13.7 billion, up 3%, and nicely above the guidance range of $12.5 billion to $12.9 billion. Search and news advertising revenue excluding traffic acquisition costs rose 10%. One big surprise in the quarter was that Windows OEM revenue\u2014paid by PC manufacturers\u2014was up 4%. The company\u2019s guidance had called for a decline in the low-to-mid teens.<\/p>\n

The company said commercial bookings in the quarter were up 14%, or 17% adjusted for currency.<\/p>\n

Microsoft repurchased $3.6 billion of common stock in the quarter.<\/p>\n

Microsoft shares have surged 36% in 2023, amid investor excitement about the company\u2019s substantial investment in OpenAI, its integration of AI software into Bing, and its rollout of AI Copilot software across its software lineup. <\/p>\n

For the December quarter, Wall Street is forecasting overall sales of $58.7 billion, with profits of $2.66 a share, but those estimates likely don\u2019t reflect expected contributions from Microsoft\u2019s recently completed acquisition of Activision.\u00a0<\/p>\n

On Tuesday\u2019s call with analysts, Microsoft CFO Amy Hood said the company sees December quarter revenue in Intelligent Cloud up 17% to 18%, ranging from $25.1 billion to $25.4 billion, ahead of Street consensus at $25 billion. The company sees Azure growth in the quarter up 26% to 27% on a constant currency basis in the quarter. The stock slipped a hair in late trading on the Azure forecast, which suggests moderating growth from the September quarter.<\/p>\n

For the Productivity and Business Processes segment, Hood projects revenue growth of 11% to 12%, to between $18.8 billion and $19.1 billion; at the midpoint that tops the old Street consensus forecast at $18.8 billion.<\/p>\n

The company expects bookings to be flat on a year-over-year basis in the quarter. Hood also said that for the June 2024 fiscal year, she continues to see flat year-over-year operating margins, including costs related to the Activision purchase.<\/p>\n

For More Personal Computing, the company sees revenue ranging from $16.5 billion to $16.9 billion, including the recently acquired Activision business.<\/p>\n

Write to Eric J. Savitz at eric.savitz@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Microsoft shares traded higher after the company posted better-than-expected financial results for its September quarter, aided by better performance than expected from the company\u2019s cloud computing business. The software firm posted revenue of $56.5 billion, up 13% from a year ago, and $2 billion ahead of Wall Street estimates. Profits were $2.99 a share, well […]<\/p>\n","protected":false},"author":1,"featured_media":77073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-77072","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nMicrosoft Stock Jumps After Earnings Beat. 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