Microsoft profit T4 2019

Microsoft's stock rose 1% after the company released financial results above expectations for the fourth quarter of its 2019 fiscal year.

Here are the key figures:

• Earnings: $ 1.37 per share, excluding certain items, compared to $ 1.21 per share as expected by badysts, according to Refinitiv
• Returned: $ 33.72 billion, versus $ 32.77 billion as forecast by badysts, according to Refinitiv

On an annualized basis, the turnover increased by 12% during the quarter, which ended on June 30, according to a statement. According to FactSet, this is the ninth consecutive quarter of double digit annualized turnover growth.

Microsoft shares gained 34% this year, which allowed the company to surpbad the market capitalization of $ 1 trillion as investors continue to bet on the ability of CEO Satya Nadella to strengthen cloud sector and win contracts against Amazon.

Microsoft's Intelligent Cloud business sector, which includes the Azure public cloud, Windows Server, SQL Server, Visual Studio, GitHub and consulting services, generated a business turnover of $ 11.39 billion. dollars during the quarter. Analysts surveyed by FactSet were expecting a turnover of 11.02 billion dollars with the smart cloud.

Azure's revenues increased 64% over the previous year, the lowest growth rate in at least four years. Microsoft does not disclose the exact revenue figures for Azure. The company reported seeing larger and longer-term Azure contracts during the quarter, in line with previous quarters.

Prior to the result, badysts at Bank of America Merrill Lynch, KeyBanc Capital Markets and Stifel announced that they expect annualized growth in the Azure market, which is expected to fall to around 68%. The moderate growth of Azure is more the law of large numbers than the decline in demand, wrote Stifel badysts, led by Brad Reback, who rate Microsoft as a purchase, in a note distributed Sunday to customers.

"Our partners' discussions during the quarter continued to focus on Azure's momentum, which allows it to significantly outpace market growth as they see the contractual commitments of Azure see a significant increase in terms of value and term of the contract, "Goldman Sachs badysts, led by Heather Bellini. who have a stock quote on Microsoft stocks, wrote in a note on Thursday.

The More Personal Computing business sector, which includes Windows, Surface, Xbox and the search engine, finished the quarter with a business turnover of $ 11.28 billion. The consensus of FactSet badysts for the segment was $ 10.99 billion.

Microsoft's Productivity and Enterprise segment, which includes Office, Dynamics, and LinkedIn, reported quarterly revenue of $ 11.05 billion, more than FactSet's consensus estimate of $ 10.70 billion.

Stifel badysts also highlighted IDC 's quarterly data on personal computer shipments last week, suggesting 4.7% year – over – year growth, on the other hand. part thanks to an increased offer of Intel processors. "Net / net, we consider these results better than expected as a modest tailwind for Microsoft's Windows activities for the quarter," they wrote.

Microsoft said it has a $ 11 billion business cloud in the commercial cloud, up 39 percent on an annualized basis. The category includes Azure Business Subscriptions, Office 365, Dynamics 365 Business Software, and LinkedIn Business Products.

The company realized capital expenditures of $ 5.3 billion in the quarter, more than any other quarter in the last four years.

During the quarter, Microsoft acquired Express Logic, announced Azure updates and introduced an Xbox console without a disk drive.

Leaders will discuss the results and provide advice during a teleconference with badysts at 5:30 pm Eastern time.

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