Microsoft Earns 62 Cents per Share

Technically, Microsoft (MSFT) posted a massive loss but that’s due to Nokia. Adjusting for that, MSFT earned 62 cents per share. That was six cents better than estimates.

While revenue from Microsoft’s cloud-computing business rose on growth in the Azure and Office 365 programs, the gains were overshadowed by the writedown, an acknowledgment that the Nokia deal had lost almost all its value after a little more than a year. Chief Executive Officer Satya Nadella announced 7,800 job cuts and said he plans to narrow the focus of the mobile business to try to win customers in specific markets.

“Phones continue to struggle and it was pretty much in line in the cloud initiatives,” said Dan Morgan, a senior portfolio manager at Synovus Securities Inc., which owns Microsoft shares. “They’re still progressing but people would like them to move faster.”

The strength of the U.S. dollar hurt revenue and earnings in the recent quarter, Microsoft said. Excluding the effect of currency fluctuations, revenue would have declined 2 percent.

For the year, the company made $2.63 per share. The stock is currently down 2.5% in the after-hours market. There’s nothing to worry about. This was a fine report.

Posted by on July 21st, 2015 at 5:46 pm


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