{"id":478194,"date":"2022-07-27T01:47:00","date_gmt":"2022-07-26T22:47:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth\/"},"modified":"2022-07-27T01:47:00","modified_gmt":"2022-07-26T22:47:00","slug":"earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth\/","title":{"rendered":"#Earnings Results: Microsoft stock jumps after \u2018shockingly robust\u2019 forecast calls for continued strong cloud growth"},"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-6a36ec307a002\" 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-6a36ec307a002\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth\/#%E2%80%9CEarnings_Results_Microsoft_stock_jumps_after_%E2%80%98shockingly_robust_forecast_calls_for_continued_strong_cloud_growth%E2%80%9D\" >&#8220;Earnings Results: Microsoft stock jumps after \u2018shockingly robust\u2019 forecast calls for continued strong cloud growth&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth\/#After-hours_share_declines_flip_to_gains_of_more_than_5_after_CFO_guides_for_cloud_growth_in_first_quarter_maintains_guidance_for_double-digit_revenue_and_operating-margin_growth_in_new_fiscal_year\" >After-hours share declines flip to gains of more than 5% after CFO guides for cloud growth in first quarter, maintains guidance for double-digit revenue and operating-margin growth in new fiscal year<\/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-3\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-microsoft-stock-jumps-after-shockingly-robust-forecast-calls-for-continued-strong-cloud-growth\/#Jeremy_C_Owens\" >Jeremy C. Owens<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CEarnings_Results_Microsoft_stock_jumps_after_%E2%80%98shockingly_robust_forecast_calls_for_continued_strong_cloud_growth%E2%80%9D\"><\/span>&#8220;Earnings Results: Microsoft stock jumps after \u2018shockingly robust\u2019 forecast calls for continued strong cloud growth&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"After-hours_share_declines_flip_to_gains_of_more_than_5_after_CFO_guides_for_cloud_growth_in_first_quarter_maintains_guidance_for_double-digit_revenue_and_operating-margin_growth_in_new_fiscal_year\"><\/span>\n  After-hours share declines flip to gains of more than 5% after CFO guides for cloud growth in first quarter, maintains guidance for double-digit revenue and operating-margin growth in new fiscal year<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 id=\"cx-next\" data-nosnippet>\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-0001057808\" role=\"document\">\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<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001057808\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Microsoft Corp. missed expectations for profit and revenue in a Tuesday earnings report, as deteriorating economic conditions led to an even greater shock than expected when executives revised their guidance at the beginning of June, but the company\u2019s forecast seemed to soothe investors\u2019 concerns.<\/p>\n<p> Microsoft<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"negative\">-2.68%<\/bg-quote><br \/>\n       on Tuesday reported fiscal fourth-quarter earnings of $16.74 billion, or $2.23 a share, up from $2.17 a share in the same quarter a year ago. Revenue increased to $51.87 billion from $46.15 billion in the year-ago quarter.<\/p>\n<div class=\"paywall\">\n       Analysts on average expected earnings of $2.29 a share on revenue of $52.38 billion, estimates that have come down since Microsoft reduced its forecast last month as a result of the strengthening dollar. Yet conditions have deteriorated even more since that warning.<\/p>\n<p>\u201cIn the fourth quarter of fiscal-year 2022, evolving macroeconomic conditions and other unforeseen items had an impact on financial results beyond what was included in our forward-looking guidance,\u201d Microsoft executives stated in their announcement.<\/p>\n<p>Microsoft shares fell nearly 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 results, but jumped to gains of more than 6% after executives shared their forecast, which showed continued strong growth for Microsoft\u2019s cloud-computing offering and maintained full-year revenue and margin expectations. <\/p>\n<p>Chief Financial Officer Amy Hood guided for fiscal first-quarter revenue of $49.25 billion to $50.25 billion, while analysts on average had been expecting $51.44 billion. While the guidance came in lower than expectations for the software and personal-computers segments, cloud revenue is expected to stay strong. <\/p>\n<p>Hood projected revenue of $20.3 billion to $20.6 billion for Microsoft\u2019s cloud segment, while analysts were expecting $20.58 billion, and guided for Azure growth of 43% at constant currency, which should calm some concerns about slowing cloud growth. Hood projected $13 billion to $13.4 billion for the PC segment, against expectations of $13.81 billion; and $15.95 billion to $16.25 billion for Microsoft\u2019s software business, while analysts expected $16.91 billion. <\/p>\n<p>For the full fiscal year, Hood maintained expectations for double-digit percentage growth in revenue and operating margins for Microsoft, both in constant currency and in U.S. dollars. Analysts had expected Microsoft could weaken that guidance to only promising the gains in constant currency.<\/p>\n<p> Wedbush analyst Daniel Ives said in an email conversation with MarketWatch that it was \u201cRock of Gibraltar guidance.\u201d<\/p>\n<p>\u201cShockingly robust and speaks volumes about cloud demand holding up\u201d despite the deteriorating economic conditions, Ives said.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetTweet\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetTweet\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DivesTech\/status\/1552061660701024256\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p><\/div>\n<\/p><\/div>\n<p>Microsoft has not had to deal with doubts in recent years, as the growth of its Azure cloud-computing product, a boom in personal-computer sales and increased usage of software as more white-collar employees worked from home have boosted the company during the COVID-19 pandemic. Microsoft\u2019s fiscal year wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed up with revenue increasing 18% to $198.27 billion and profit jumping 18.7% to $72.74 billion.<\/p>\n<p>Many of those catalysts appear to be waning, however. The PC boom is over, with firms reporting the biggest year-over-year decline in shipments of the devices in years, and there are concerns about cloud growth as well. Microsoft has sent some signals that it is cutting back in the face of the uncertainty, closing down some open jobs and making select cuts in its workforce.<\/p>\n<p><strong>For more: It\u2019s the end of \u2018fantasyland\u2019 for Big Tech and its workers<\/strong><\/p>\n<p>\u201cHeading into the quarter, investors are understandably concerned with multiple crosscurrents potentially impacting Microsoft\u2019s results and outlook into FY23: PC shipment declines pressuring Windows OEM results, FX headwinds, a weakening consumer and overall macro weaknesses all serve as potential risks,\u201d Morgan Stanley analysts wrote in a preview of the report last week.<\/p>\n<p>Microsoft\u2019s segment results showed a larger-than-expected slowdown for both cloud and PCs. The \u201cIntelligent Cloud\u201d segment grew to revenue of $20.91 billion from $17.38 billion a year ago, missing the average FactSet analyst estimate of $21.09 billion. The company said that Azure revenue grew 40%, 46% in constant currency, after analysts on average predicted a 43% standard growth rate and Microsoft guided for a constant-currency growth rate of roughly 47%. Microsoft does not provide full financial information on Azure, despite its major rivals \u2014 Amazon.com Inc.\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-5.23%<\/bg-quote><br \/>\n       Amazon Web Services and Alphabet Inc.\u2019s<br \/>\n        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/lastsale\" class=\"negative\">-2.32%<\/bg-quote><br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"negative\">-2.56%<\/bg-quote><br \/>\n       Google Cloud \u2014 breaking out revenue and profit margins for their products.<\/p>\n<p><strong>Don\u2019t miss: The cloud boom may be coming back to Earth, and that would be scary for tech stocks<\/strong><\/p>\n<p>Microsoft\u2019s PC segment, dubbed \u201cMore Personal Computing,\u201d collected $14.36 billion in revenue, up from $14.09 billion a year ago and missing analysts\u2019 average forecast of $14.63 billion, according to FactSet. Software revenue, collected in a segment called \u201cProductivity and Business Processes,\u201d rose to $16.6 billion from $14.69 billion a year ago, while analysts on average were expecting $16.64 billion.<\/p>\n<p>Microsoft\u2019s stock has declined 25.6% so far this year, as 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\">-1.15%<\/bg-quote><br \/>\n       has dropped 16.6% and the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.71%<\/bg-quote><br \/>\n      \u2014 which counts Microsoft as a component \u2014 has decreased 12%. The decline has pushed Microsoft\u2019s market cap lower than $2 trillion, leaving only Apple Inc.<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-0.88%<\/bg-quote><br \/>\n       above that mark. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jeremy C. Owens\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/jeremy-c-owens\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/jowens510\",\"text\":\"@jowens510\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:jowens@marketwatch.com\",\"text\":\"jowens@marketwatch.com\"}]}' 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><ufc-follow-author-widget product=\"marketwatch\" author-id=\"85_MW\" author-name=\"Jeremy C. Owens\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fmicrosoft-misses-on-earnings-and-revenue-stock-drops-11658866375%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/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=%7B20C06575-04D4-B545-7102-410013DC692D%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Earnings Results: Microsoft stock jumps after \u2018shockingly robust\u2019 forecast calls for continued strong cloud growth&#8221; After-hours share declines flip to gains of more than 5% after CFO guides for cloud growth in first quarter, maintains guidance for double-digit revenue and operating-margin growth in new fiscal year Microsoft Corp. missed expectations for profit and revenue in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":478195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-591204\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-478194","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\/478194","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=478194"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/478194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/478195"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=478194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=478194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=478194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}