Microsoft stock rises after topping earnings forecasts, setting record fiscal year

Microsoft earnings

Microsoft Earnings

Shares in Microsoft Corp (NASDAQ: MSFT) jumped 1.45% to change hands at $138.40 apiece in after-hours trading Thursday, after the tech giant announced upbeat earnings results for the fourth quarter of its 2019 fiscal year.

Redmond, Washington-based Microsoft returned $7.7 billion to shareholders in the form of share dividends and repurchases in the quarter. The stock, which is up 34% this year, ended the regular session up 0.11%, or $0.15 to $136.42.

MSFT Earnings & Outlook

Microsoft had net income of $13.2 billion, and diluted earnings of $1.71 per share, compared to net income of $8.9 billion, and diluted earnings of $1.14 per share in the same period last year. Excluding items, the company earned $1.37 per share, surpassing Refinitiv consensus of $1.21 per share.

Revenue came in at $33.72 billion, versus revenue of $30.1 billion in the earlier-year quarter. Analysts had been calling for revenue of $32.77 billion, according to data compiled by Refinitiv. The tech giant had guided to earnings of $1.08 per share on revenue of $32.8 billion.

Microsoft’s More Personal Computing unit saw revenue jump 4% to $11.28 billion during the quarter, while revenue in its Productivity and Businesses division came to $11.05 billion, up 14% year over year.

Microsoft generated revenue of $11 billion in its Commercial Cloud business segment, a 39% increase from the same period last year.

Microsoft CEO Comments

“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” Microsoft chief executive officer Satya Nadella commented in a press release.

Every day we work alongside our customers to help them build their own digital capability – innovating with them, creating new businesses with them, and earning their trust. This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack,”  Nadella added.

“Q4 commercial cloud revenue increased 39% year-over-year to $11.0 billion, driving our strongest commercial quarter ever,” said Microsoft executive vice president and chief financial officer Amy Hood.

Microsoft Corp Profile

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.

The company is organized into three overarching segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Through acquisitions, Microsoft owns Xamarin, LinkedIn, and GitHub. It reports revenue in product and service and other revenue on its income statement. – Warrior Trading News