Microsoft Corporation (MSFT) Q1 2018 Earnings Top Expectations

Advertisement

Microsoft Corporation (NASDAQ:MSFT) posted its first-quarter results after the bell Thursday.

Microsoft Corporation
Source: Shutterstock

The tech giant kicked off its fiscal 2018 with an impressive three months, including earnings of 84 cents per share on an adjusted basis. Analysts polled by Thomson Reuters were calling for earnings of 72 cents per share, on an adjusted basis.

Microsoft also unveiled revenue of $24.54 billion, which was nearly $1 billion more than the $23.56 billion that Wall Street had projected, according to Thomson Reuters.

One of the most notable achievements of the quarter was to top the company’s goal of a $20 billion in annualized revenue run rate for its commercial cloud business. This includes the Azure cloud, subscriptions of Office 365, as well as Dynamic 365 apps for customer relationship management and enterprise resource planning.

The figure came in at $20.4 billion for the quarter. Another strong point was Microsoft’s Surface hardware revenue, which surged 12% for the quarter after the Surface Laptop was introduced in June.

Search ad revenue increased by 15% thanks to higher search volume, as well as more revenue per search. A weaker point in the quarter was gaming revenue, which slipped 1%, ahead of the launch of the Xbox One X on Nov.7.

Microsoft predicts that it will bring in 83 cents per share in earnings for its current quarter on an adjusted basis. Meanwhile, revenue is slated to come in at $28.15 billion.

MSFT stock grew 3.7% after hours.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/microsoft-corporation/.

©2024 InvestorPlace Media, LLC