Microsoft reported stronger performance 1 quarter of fiscal 2021 than analysts had expected, thanks to growth in cloud business, Azure, and Xbox games. At the same time, the company gave a lower forecast for the 2nd quarter than expected on Wall Street.
Shares of Microsoft (MSFT), increased by almost 48% over the past 12 months, decreased by 1.85% in after-hours trading on Tuesday when the company published its report for the 1st quarter of 2021 financial year ended 30 September.
Microsoft reported an increase in earnings per share by 32% (compared to the same quarter a year ago) to $of 1.82, which is $0.28 and more than the analyst estimate of $1,54. Total profit rose to $13,89 billion from $10,68 billion a year earlier.
Total income increased by 12% and amounted to us $37.2 billion, which is above average analytical evaluation $of 35.72 billion, but the growth rate declined for the second consecutive quarter. See the quarterly history of revenue and profit of Microsoft for the last 2 years can link.
Income units Microsoft
“Demand for our cloud offerings served as a good beginning of the financial year, as revenue from commercial cloud amounted to $15.2 billion, or 31% more than last year,” said Amy hood, Executive Vice President and chief financial officer of Microsoft.
The Microsoft executives noted improvements due to the transition to a subscription model for software products that allowed the company to receive a steady stream of income.
The greatest demand in a pandemic, received the cloud products, Azure for remote operation and the gaming business is the Xbox, including video games, subscriptions and consoles. In September, Microsoft said that for those who can’t afford to buy a console, the company will begin to offer its included in the cost of the monthly subscription.
Revenue “Productivity and business processes”, which includes products Dynamics, LinkedIn, and Office, grew by 11% to $12,32 billion, surpassing analysts ‘ forecasts of $11,78 billion.
Microsoft noted the increase in applications for Teams working in teams is included in the application package Office 365 and now has more than 115 million active users per day, compared with 75 million in April.
Revenues of the division “Intelligent cloud”, which includes products Azure, Enterprise Services, GitHub and server products such as SQL Server and Windows Server, grew the most – by 20% (compared to the same quarter last year) to $12,99 billion, exceeding analyst forecasts of $to 12.73 billion.
Revenue “More Personal Computing”, which includes search advertising, Surface, Windows and Xbox rose 6% to $11, and 85 billion, also exceeding analyst forecasts of $11,18 billion.
The table below shows the growth data for each product by quarter.
Forward-looking statements Microsoft
Microsoft will release a new Xbox console Series X and Series S November 10, and expects growth in revenues of the gaming business about 20% in the second quarter of the fiscal year.
In the review quarter, the Microsoft executives warned that revenues from search ads (Search ads) will also be reduced in the second quarter. To improve the situation, and could purchase applications TikTok, however, the company refused the offer of Microsoft.
The average value of the range forecast Microsoft’s revenue of the 2nd quarter of 2021 fiscal year assumes 8% growth, but below expectations of Wall Street: $39,95 billion (the company expects revenue from $39.5 billion to $40.4 billion) against $40,43 billion, according to analysts.