World News – CA – Microsoft has far exceeded expectations as cloud, video games continue to shine during pandemic

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Microsoft Corp easily exceeded revenue and sales expectations with a Tuesday report, as its three core segments rose sharply amid demand for cloud services and video games during the COVID-19 pandemic

Microsoft
MSFT,
150%
on Tuesday reported first quarter financial results of $ 13.9 billion, or $ 1.82 per share, up from $ 1.38 shares a year ago Revenue reached $ 37.2 billion, up from $ 33.0 billion a year ago Analysts on an expected average profit of $ 1.54 a share on sales of $ 35 76 billion, according to FactSet

Microsoft stock edged up after hours of trading immediately after the results were released, after closing with a 1gain of 5% to $ 213.25 Stocks have gained 353% so far this year, as the Dow Jones Industrial Average
DJIA,
-080%,
which counts Microsoft as a component, declined 12%

Much of the excitement Microsoft has generated has been focused on its ambitions and gains in the cloud in recent years, as its Azure cloud computing offering has emerged as a legitimate challenger to Amazon.com IncS
AMZN,
247%
Amazon Web Services Microsoft reported first quarter revenue in its “Intelligent Cloud” segment – which includes Azure as well as sales of servers and other businesses – of $ 12.99 billion, up from $ 10.85 billion a year ago and exceeding analysts’ average estimate of $ 12 73 billion

« Demand for our cloud offerings got off to a good start with our commercial cloud revenues generating $ 15.2 billion, up 31% year over year, » said CFO Amy Hood in Tuesday’s press release

Microsoft said Azure revenue grew 48%, the only breakthrough information the company provided on this key product, even though major competitors Amazon and Alphabet Inc Google
GOOGL,
092%

GOOG,
086%
report their total cloud computing revenue Wedbush analyst Dan Ives said ahead of the report’s release that he expected Azure to show « around 50% » gains and predicted a quarter « beat and grow » for Microsoft

« In many cases, we are seeing companies accelerate their digital transformation and cloud strategy with Microsoft from 6 to 12 months as the prospects of a heavy remote workforce for the foreseeable future now present themselves in cards with this COVID-19 backdrop, « Ives wrote last week, » While we’ve seen the momentum for this backdrop over the past few quarters, we think the flow of transactions looks solid at the Approaching FY21 as we estimate Microsoft is only about 35% penetrating its unmatched installed base on the cloud transition »

As investors focused on the cloud and other corporate products for Microsoft, consumers are coming back with this report The COVID-19 pandemic has caused an increase in personal computer sales in recent months, and Microsoft will launch the latest Xbox video game console next month

Microsoft announced sales of $ 11.85 billion in the « More Personal Computing » segment, which includes PC and Xbox revenue. This is from $ 11 to 13 billion during the same period a year ago, and ahead of analysts’ average estimate of $ 11 18 billion

The company said revenue from Xbox content and services jumped 30% from a year ago in the quarter, after sales were flat a year ago by the same measure. Video games experienced strong growth during the pandemic, with Microsoft reporting a 65% increase in Xbox-related revenue in the last quarter, and the release of the new Xbox is expected to further accelerate that growth

Read also: Video games are about to get more expensive for the first time in 15 years

Expectations for holiday sales of the new Xbox Series X and Series S consoles will be incorporated into Microsoft’s forecast for the current quarter The company typically shares its forecast in its quarterly conference call, scheduled for 5:30 p.m.m Wednesday Eastern Time

Microsoft’s other segment – “Productivity and Business Processes,” which includes cloud-based software offerings like its Office suite and LinkedIn – had revenue of $ 12.32 billion That’s from $ 11.08 billion a year ago and exceeds analysts’ average estimate of $ 11.79 billion, according to FactSet

Investors woke up on Monday morning and apparently decided that something had changed over the weekend – and they started selling

Jeremy Owens is the chief technology editor of MarketWatch and the head of the San Francisco bureau. You can follow him on Twitter @ jowens510

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Microsoft Corporation, Cloud Computing, Revenue, Microsoft Azure

World News – CA – Microsoft Profits Easily Exceed Expectations As Cloud And Video Games Continue To Shine For the pandemic



SOURCE: https://www.w24news.com/news/world-news-ca-microsoft-has-far-exceeded-expectations-as-cloud-video-games-continue-to-shine-during-pandemic/?remotepost=475951

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