Microsoft Profit Tops Expectations
January 28 2016 - 5:00PM
Dow Jones News
Microsoft Corp. on Thursday reported better-than-expected
adjusted earnings and revenue for its latest quarter, as its cloud
business continued to drive growth.
Shares rose 5.5% to $54.91 a share in after-hours trading.
Microsoft, like many mature tech companies, has been struggling
to grow. The software maker is focusing on its cloud-services
segment, which includes services like Azure and was recently broken
out into a new reporting segment.
Revenue for Microsoft's "Intelligent Cloud" segment rose 5% to
$6.34 billion. On a constant-currency basis, revenue grew 11% in
the fiscal second quarter but slowed from the 14% growth it posted
in the first quarter.
That comes as Microsoft's best-known business—software for
personal computers—continued to weaken. That segment, which also
includes its Xbox videogame consoles and popular Surface Pro,
posted a 2% decline in revenue excluding currency impacts.
In all for the period ended Dec. 31, Microsoft reported a profit
of $5 billion, or 62 cents a share, down from $5.86 billion, or 71
cents a share, a year earlier.
On an adjusted basis, earnings rose to 78 cents from 70 cents a
year earlier.
Revenue fell 10% to $23.8 billion, or $25.69 billion on an
adjusted basis.
Analysts polled by Thomson Reuters had expected adjusted
per-share profit of 71 cents and revenue of $25.26 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 28, 2016 16:45 ET (21:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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