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Highlights From Microsoft’s Fiscal Quarterly Earnings – $MSFT $DIA

By John F. Heerdink, Jr.

Reportedly, Microsoft (MSFT) missed analyst expectations for its fiscal fourth quarter, blaming unfavorable foreign exchange rates and weak PC sales. 

Highlights for the Quarter Ended June 30:

  • Microsoft earned $2.23 a share on sales of $51.9 billion in the quarter ended June 30. The analyst estimated Microsoft’s earnings of $2.29 a share on sales of $52.4 billion. 
  • On a year-over-year basis, Microsoft earnings increased 3% while sales climbed 12%.
  • In constant currency, Microsoft earnings increased 8% while sales advanced 16%.
  • Unfavorable foreign exchange rates lowered Microsoft’s revenue by $595 million and cut earnings per share by 4 cents in the quarter.
  •  Covid-related production shutdowns in China and a deteriorating PC market reduced its Windows software revenue by more than $300 million from the company’s target.
  • Reduced advertising spending negatively impacted Microsoft’s LinkedIn, search, and news advertising revenue by over $100 million.
  • Microsoft’s cloud computing businesses drove sales growth in the June quarter.
  • Microsoft’s Intelligent Cloud was the top performer in the quarter with revenue in the segment increasing 20% year over year to $20.9 billion. The unit includes server products and cloud services such as Azure infrastructure offerings.
  • The productivity and Business Processes unit reported a sales increase of 13% to $16.6 billion. The unit includes Office productivity software, Dynamics, and LinkedIn businesses.
  • Microsoft’s Personal Computing unit which includes Windows software, Xbox video games, Surface computers, internet search, and advertising, posted a 2% increase in sales to $14.4 billion in the fiscal third quarter.

For the current quarter, Microsoft expects to generate sales of $49.75 billion, up 10% year over year. 

Redmond, Washington-based American multinational technology company Microsoft (MSFT) develops, manufactures, licenses supports, and sells computer software, consumer electronics, personal computers, and related services. To learn more about Microsoft (MSFT) and to track their progress please visit the Vista Partners Coverage Page.

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(Read Original Story: Microsoft Misses Targets Amid Unfavorable Exchange Rates, PC Sales Weakness in Investor's Business Daily)


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