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Microsoft shares jump to all-time high after positive earnings report

By midian182
Oct 21, 2016
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  1. Global PC shipments may be down for the eighth consecutive quarter, but Microsoft’s revenues are still moving in the right direction, thanks to the popularity of its cloud, Office, and Surface businesses. The company posted earnings for its first fiscal quarter of 2017 yesterday, showing results that beat many analysts’ expectations.

    Microsoft reported revenue of $20.5 billion and net income of $4.75 billion, or 60 cents a share. Non-GAAP results were 76 cents a share on revenue of $22.3 billion for the first quarter, exceeding Wall Street estimates of 68 cents a share on adjusted revenue of $21.71 billion.

    Revenue from Surface products reached $926 million during the last quarter, up from $672 million a year ago, with the Surface Pro 4 and Surface Book selling particularly well. Microsoft will no doubt be pleased with the line’s 38 percent YoY increase, but the Surface sector still has some way to go before it matches Apple’s iPad business, which brought in $4.9 billion in revenue last quarter. So expect the Windows maker to continue its series of iPad-mocking ads.

    Again, the intelligent cloud area was a big earner for Microsoft. The section, which includes Windows Server and Azure, grew 8.3 percent overall to $6.4 billion, with Azure revenue increasing 116 percent from the same time last year.

    Strong Office and Office 365 sales helped the company’s productivity and business process segment grow 6 percent to $6.7 billion.

    It wasn’t all good news from Microsoft; unsurprisingly, revenue from its phone business declined 72 percent, while price cuts and declining Xbox sales saw its revenue drop 5 percent. Windows OEM Pro and non-Pro revenue remained flat.

    However, the overall personal computing section, which covers all Windows licensing and devices, was down just 2 percent to $9.3 billion – better than expected, considering the continuing decline in commercial PC sales.

    We’ll find out in the next quarter what effect the LinkedIn acquisition and rumored all-in-one surface device has on Microsoft’s finances.

    The positive report saw the company’s share price jump 6.1 percent to $60.73, adding more than $27 billion to its market value. It’s the first time the shares have passed the $60 mark since December 1999.

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  2. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,476   +2,034

    They're certainly not making much money from me, the only thing I use of theirs is Windows and nothing else.
     
    wastedkill likes this.
  3. Kibaruk

    Kibaruk TechSpot Paladin Posts: 2,506   +498

    This is funny for those guys who say Microsoft is dying.

    I'm pretty sure they are super concerned about it.
     
  4. Uncle Al

    Uncle Al TS Evangelist Posts: 1,662   +769

    Certainly not "dying", but their rate of growth is slowing despite one or two good earnings reports. You have to consider that a 20% growth is a lot different for a 1 million dollar company and a 1 billion dollar company. They might not seem concerned, but the boys at the top's bonus checks are very much tied to sales and growth, so you can bet THEY are super concerned every working day ......
     
    wastedkill likes this.
  5. Nobina

    Nobina TS Evangelist Posts: 844   +335

    I wouldn't be surprised. Just imagine how much money they got from all the personal data they gathered.
     
  6. CTSNic

    CTSNic TS Rookie

    I'm not sure how I feel about this, but I am happy to see them finally have a boost. I didn't invest back in '12 like I thought about doing, and this is just a little salt on the wound. I feel like they have done great in terms of stock value the past 4 years, but also can see them evening out. Any reason they would keep climbing the next couple years considering the mobile world appears to be taking over in terms of personal computers, leaving MS to business and corporations, which, still pay a pretty penny for software.
     
  7. RustyTech

    RustyTech TS Guru Posts: 865   +434

    Exactly this! ^
     
  8. Teko03

    Teko03 TS Maniac Posts: 317   +115

    Microsoft's revenue isn't coming from Windows 10 or OneDrive...it's largely from their enterprise Azure Cloud business.
     
  9. Nobina

    Nobina TS Evangelist Posts: 844   +335

    I wasn't being serious by the way.
     
  10. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,476   +2,034

    Indubitably. I have no idea how they are going to survive.
     
    Kibaruk likes this.

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