Microsoft stock

2022 - 7 - 26

Post cover — Image courtesy of "Barron's"

Microsoft Stock Gains On Cloud Strength Despite Earnings Miss (Barron's)

The company also said it expects double-digit revenue and profit growth for its June 2022 fiscal year. Slowing PC demand and a host of economic and geopolitical ...

Microsoft Stock Slides On Q4 Earnings Miss As Azure Growth Slows ... (TheStreet)

Microsoft posted weaker-than-expected fourth quarter earnings Tuesday as a surging U.S. dollar blunted the impact of overseas demand for its flagship cloud ...

Microsoft had forecast a range of between $2.24 and $2.32 per share in early June. The FX hit for the first quarter will be around 5 points, Microsoft said. More Personal Computing revenues rose only 2% to $14.4 billion amid what the group described as "extended production shutdowns in China that continued through May and a deteriorating PC market in June", both of which "contributed to a negative impact on Windows OEM revenue of over $300 million." Intelligent Cloud revenues were forecast between $20.3 billion and $20.6 billion for the first quarter, with continued margin improvements expected for Azure, which will see a growth slowdown of around three percentage points. Overall group revenues rose 12.4% to $51.87 billion for the three months ending in June, Microsoft's fiscal fourth quarter, missing analysts' estimates of a $52.45 billion tally and the company's owned lowered guidance of between $51.94 billion to $54.74 billion. Microsoft said revenues for Azure, its flagship cloud division, rose 40% from last year, slowing notably from its prior quarter gains in the mid to high 40-percent range as companies pulled back on digital infrastructure spending and the dollar continued its 2022 climb.

Microsoft misses estimates but stock up 5% on rosy guidance (CNBC)

Microsoft said it would have had more revenue in the quarter were it not for unfavorable foreign-exchange rates and tougher PC and advertising markets.

The company said factory shutdowns in China in April and May and a worsening computer market in June reduced Windows revenue from device makers by $300 million. Sales of Windows licenses to device makers fell by 2% in the quarter. Still, a contraction in advertising spending resulted in a $100 million cut to revenue for the search and news advertising and LinkedIn categories. The More Personal Computing segment featuring the Windows operating system, Xbox video-game consoles, the Bing search engine and Surface devices delivered $14.36 billion in revenue for the quarter. In June, Microsoft reduced its quarterly income and revenue guidance guidance for income and revenue just because of rate fluctuations. That was up nearly 13% and slightly less than the StreetAccount consensus of $16.66 billion. Analysts surveyed by CNBC had expected 43.1%, while the consensus estimate from StreetAccount was 43.4%. Microsoft does not disclose Azure revenue in dollars. That was up 20% and below the consensus of $21.10 billion among analysts polled by StreetAccount. The company said revenue from Azure and other cloud services grew by 40%, compared with 46% in the prior quarter. Revenue and income for the quarter came in at the low end of the ranges that Microsoft had put forward in June. She said Microsoft would lengthen the useful life of server and networking equipment to six years from four years. The company's earnings per share fell short of consensus for the first time since 2016, with net income rising 2% to $16.74 billion.

Microsoft shares rise on upbeat 2023 sales growth forecast - BNN ... (BNN)

Microsoft Corp. gave an upbeat sales forecast for the fiscal year that just began, easing investor concerns about growth that had flared up following a ...

Redmond, Washington-based Microsoft in June reduced its sales and profit forecast for the fourth quarter, blaming the stronger US dollar for a revenue hit of US$460 million. Global PC shipments dropped more than 15 per cent in the quarter, according to IDC, although they remain above pre-pandemic levels. Revenue in the fourth quarter, which ended June 30, rose 12 per cent to US$51.9 billion, the software maker said in a statement. The company has also eliminated many open jobs and slowed hiring including in units that make Azure, Windows, Office and security software. Google parent Alphabet Inc., which also reported earnings Tuesday, has sounded a similar note of caution on hiring, as have Apple Inc. and Amazon.com Inc. -- and shareholders are scrutinizing technology industry numbers closely for signs of wilting demand. Still, the company signed a record number of Azure contracts worth more than US$100 million and US$1 billion, she said. Demand slowed further in the last few weeks of Microsoft’s quarter, as customers delayed purchases in anticipation of a possible global recession, said Derrick Wood, an analyst at Cowen. Microsoft said it is attracting more large deals to its Azure cloud-computing software and moving clients to pricier versions of Office cloud programs. The war in Ukraine prompted the company to scale back in Russia, leading to accounting charges of US$126 million. Microsoft shares rose as high as US$269.41 in extended trading following the forecast. Microsoft also recorded US$113 million in severance payments in the recent period. Overall sales rose the least since September 2020, with Azure growth rates continuing to tick lower and the broader personal-computer market on track for an annual decline.

Stock Market News Today Live: Dow, S&P 500 Finish Lower Ahead ... (The Wall Street Journal)

Microsoft Corp. shares rallied after the company issued its guidance for the full year. The company said sales and operating income on a currency adjusted ...