MICROSOFT share price falls following Q2 earnings, 46.90 Monday close, today opened down more than 8% at 42.80.
The computer software, consumer electronics and personal computers and services firm reported positive Cloud revenue which took overall revenue slightly over the analysts forecast.
Forecast: per-share earnings of $0.71 on revenue of $26.33 billion
Actual: $0.71 per share on $26.5 billion revenue
Commercial cloud revenue grew triple-digits for the sixth consecutive quarter, reaching an annualized revenue run rate of $5.5 billion. “Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership,” said Satya Nadella, chief executive officer of Microsoft.
Microsoft announced revenue of $26.5 billion for the quarter ended December 31, 2014. Gross margin, operating income, and diluted earnings per share (“EPS”) for the quarter were $16.3 billion, $7.8 billion, and $0.71 per share, respectively.
These financial results include $243 million of integration and restructuring expenses, or a $0.02 per share negative impact, related to both Microsoft’s restructuring plan announced in July 2014 and the ongoing integration of the Nokia Devices and Services (“NDS”) business. There is also a $0.04 per share negative impact related to income tax expense resulting from an IRS audit adjustment.
Devices and Consumer revenue grew 8% to $12.9 billion.
Commercial revenue grew 5% to $13.3 billion.
Analysts were expecting commercial sales of $10.94 billion while Microsoft reported commercial licensing revenue of only $10.68 billion.
Microsoft also announced its intention to complete the existing $40 billion share repurchase authorization by December 31, 2016.
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