{"id":237000,"date":"2021-04-28T01:19:00","date_gmt":"2021-04-27T22:19:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/microsoft-earnings-beat-expectations-across-the-board-but-the-stock-is-falling\/"},"modified":"2021-04-28T01:19:00","modified_gmt":"2021-04-27T22:19:00","slug":"microsoft-earnings-beat-expectations-across-the-board-but-the-stock-is-falling","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/microsoft-earnings-beat-expectations-across-the-board-but-the-stock-is-falling\/","title":{"rendered":"#\n  Microsoft earnings beat expectations across the board, but the stock is falling"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3843df9e5d1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3843df9e5d1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/microsoft-earnings-beat-expectations-across-the-board-but-the-stock-is-falling\/#After_three_consecutive_record_closing_highs_shares_dip_in_after-hours_trading_despite_another_quarter_of_more_than_40_billion_in_revenue_15_billion_in_profit_decline_lessens_after_forecast\" >After three consecutive record closing highs, shares dip in after-hours trading despite another quarter of more than $40 billion in revenue, $15 billion in profit; decline lessens after forecast<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/microsoft-earnings-beat-expectations-across-the-board-but-the-stock-is-falling\/#Jeremy_C_Owens\" >Jeremy C. Owens<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Microsoft earnings beat expectations across the board, but the stock is falling<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"After_three_consecutive_record_closing_highs_shares_dip_in_after-hours_trading_despite_another_quarter_of_more_than_40_billion_in_revenue_15_billion_in_profit_decline_lessens_after_forecast\"><\/span>\n  After three consecutive record closing highs, shares dip in after-hours trading despite another quarter of more than $40 billion in revenue, $15 billion in profit; decline lessens after forecast<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000247776\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Microsoft Corp.\u2019s earnings easily surpassed estimates on Tuesday, but shares still fell in after-hours trading following a string of record closing prices.<\/p>\n<p> Microsoft<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"positive\">+0.16%<\/bg-quote><br \/>\n       on Tuesday reported fiscal third-quarter earnings of $15.46 billion, or $2.03 a share, up from $1.40 a share a year ago, with profit buttressed by a $620 million net income-tax benefit. Without that tax gain, Microsoft would have reported earnings of $1.95 a share, still ahead of estimates. Revenue for the quarter was $41.7 billion, up from $33.06 billion in the same quarter last year.<\/p>\n<div class=\"paywall\">\n       Analysts on average expected earnings of $1.78 a share on sales of $41.04 billion, according to FactSet. Shares fell more than 3% in after-hours trading im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely following the release of the report, though those losses lessened later in the extended session, after Microsoft issued quarterly guidance that beat analyst estimates. <\/p>\n<p>Analysts suggested Tuesday afternoon that Wall Street expected a bigger revenue beat from Microsoft, with Evercore ISI analysts writing in a note that \u201cthe top line beat was perhaps a bit below buy-side expectations,\u201d and Wedbush analyst Dan Ives writing that the stock was \u201cselling off after-hours in knee-jerk fashion as the Street was hoping for a bigger top-line beat.\u201d<\/p>\n<p>The stock had closed at a record high for a third consecutive session, with a 0.2% daily gain to $261.97. Microsoft stock is on track for its sixth consecutive positive month, which would be its strongest run since an eight-month streak that ended in January 2020. <\/p>\n<p>Microsoft shares have largely been trading at or near record highs for months, amid strong gains for personal-computer sales, collaboration software and cloud-computing adoption during the COVID-19 pandemic. In the holiday season, Microsoft surpassed $40 billion in quarterly sales and $15 billion in quarterly profit for the first time, pushing shares to a then-record; it repeated the performance in the first calendar quarter of 2021, though revenue came up short of the record holiday-quarter sales. <\/p>\n<p>Microsoft\u2019s cloud-computing product, Azure, grew sales 50% in the first three months of the year, the company disclosed. Microsoft does not provide raw numbers for Azure performance, unlike rivals like Amazon.com Inc.\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+0.25%<\/bg-quote><br \/>\n       Amazon Web Services and Alphabet Inc.\u2019s<br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"negative\">-0.84%<\/bg-quote><\/p>\n<p>        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"negative\">-0.82%<\/bg-quote><br \/>\n       Google Cloud. The segment that includes Azure \u2014which also wraps in sales of on-premises servers and other businesses \u2014 reported total revenue of $15.1 billion, up from $12.28 billion a year ago. Analysts on average expected \u201cIntelligent Cloud\u201d sales of $14.93 billion, according to FactSet.<\/p>\n<p>Microsoft\u2019s \u201cProductivity and Business Solutions\u201d segment, which includes Office and other cloud-software products, reported revenue of $13.6 billion, up from $11.74 billion a year ago. Analysts on average expected sales of $13.49 billion, according to FactSet. In the \u201cMore Personal Computing\u201d segment, which includes Windows as well as Xbox and Surface revenue, Microsoft reported revenue of $13 billion, up from $11 billion a year ago. Analysts on average projected revenue of $12.55 billion, FactSet reported.<\/p>\n<p>While a strong market for PCs helped the latter segment, big gains for Xbox helped as well, with the new Xbox <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">Series<\/a> X and Series S consoles leading to hardware sales more than <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>ling and continued growth in software and services.<\/p>\n<p>\u201cIn gaming, we continue to see record engagement and strong monetization across our platform as well as demand that significantly exceeded supply for Xbox Series X and S consoles,\u201d Chief Financial Officer Amy Hood said in a conference call Tuesday, later adding that she expects demand to outstrip supply in the current quarter. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Overall, analysts expect that the bump experienced by some Microsoft products as companies moved to a work-from-home environment will be replaced by companies looking to reboot plans for large changes to its business overall. <\/p>\n<p>\u201cIn many cases, we are seeing enterprises accelerate their digital transformation (larger deals) and cloud strategy with Microsoft by 6 to 12 months as the prospects of a semi-remote workforce for the foreseeable future looks here to stay and Redmond hits its next stage of growth in the cloud,\u201d Wedbush\u2019s Ives wrote in a preview of the earnings report last week.  <\/p>\n<p>\u201cOver a year into the pandemic, digital adoption curves aren\u2019t slowing down. They\u2019re accelerating, and it\u2019s just the beginning,\u201d Chief Executive Satya Nadella said in Tuesday\u2019s announcement.<\/p>\n<p>Hood guided for fiscal fourth-quarter revenue of $43.6 billion to $44.5 billion, breaking down as \u201cIntelligent Cloud\u201d revenue of $16.2 billion to $16.45 billion, \u201cMore Personal Computing\u201d revenue of $13.6 billion to $14 billion, and \u201cProductivity and Business Solutions\u201d sales of $13.8 billion to $14.05 billion. Analysts on average were forecasting fiscal fourth-quarter earnings of $1.78 a share on sales of $42.98 billion.<\/p>\n<p>Microsoft stock has gained 50.5% in the past year, as the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.01%<\/bg-quote><br \/>\n       \u2014 which counts Microsoft as a component \u2014 has increased 40.8% and the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.02%<\/bg-quote><br \/>\n       has moved 45.5% higher.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jeremy C. Owens\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jeremy_C_Owens\"><\/span>Jeremy C. Owens<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3C7E075EF11%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Microsoft earnings beat expectations across the board, but the stock is falling &#8221; After three consecutive record closing highs, shares dip in after-hours trading despite another quarter of more than $40 billion in revenue, $15 billion in profit; decline lessens after forecast Microsoft Corp.\u2019s earnings easily surpassed estimates on Tuesday, but shares still fell&#8230;<\/p>\n","protected":false},"author":1,"featured_media":237001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-237000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/237000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=237000"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/237000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/237001"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=237000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=237000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=237000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}