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Here’s What You Need To Know From Microsoft’s $26B Quarter

A Guy

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Microsoft met the street’s financial expectations: The company’s $26.5 billion in revenue and $0.71 in earnings per share were in-line. Its profit declined from the year-ago period, but that was expected due to prior one-time benefits, and the current fiscally deleterious impact of the company’s phone assets that didn’t exist in the year-ago quarter.

The company is down more than 4 percent in after-hours trading, drifting down further as time has passed. The company’s earnings call, which can sometimes reassure investors, did not. That’s likely due to the fact that Microsoft indicated on the call that it now expects to grow a mere 4 or 5 percent during its current fiscal year.

What is driving that limp growth? The company cited that it expects 4 points of revenue drag due to foreign-exchange-related issues alone moving forward. That, coupled with macro conditions that are weak in some markets, including Japan, and the prior impact of the XP end-of-life bump that has ended, are causing Microsoft’s top-line expansion to slow.

So was it all bad? Not at all. Microsoft’s hardware had a good quarter.

A Guy

My Computer

System One

  • OS
    Windows 10 Home x64
    Computer type
    System Manufacturer/Model
    INTEL Core i5-750
    ASUS P7P55D
    KINGSTON HyperX Fury Black Series 8GB (2 x 4GB) 1866Mhz
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    EVGA GTX750
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    LG 27MP33HQ 32" IPS LED
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    Samsung 840 Evo 120 GB, 2 x SEAGATE 500GB Barracuda® 7200.12, SATA 3 Gb/s, 7200 RPM, 16MB cache
    ANTEC TruePower New TP-550, 80 PLUS®, 550W
    ANTEC Three Hundred Illusion
    COOLER MASTER Hyper 212 Plus, 3 x 120mm 1 x 140mm Case
    Internet Speed
    20 + Mbps

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