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Microsoft Corp. stock rose more than 4% in the extended session Wednesday after the company's cloud divisions pushed the software giant to a top- and bottom-line beat.
The Redmond, Wash.-based company reported in the previous year, a net income jump of 34% to $ 8.8 trillion, which amounts to earnings of $ 1.14 a share. Analysts polled by FactSet had expected net income of $ 7.46 billion, or 94 cents a share. Sales also exceeded expectations, up 19% to $ 29.08 billion compared with the year-earlier period.
Shares in the tech giant rose 4.3% in the extended session after closing down 5.4% to $ 102.32 during the regular session. Microsoft
MSFT, -5.35%
stock has gained 19% this year, as the S & P 500 index
SPX, -3.09%
pink 2.5%.
Microsoft continues to benefit from public cloud adoption, and the company's Azure division, which includes several components of its cloud computing platform, grew 76% compared with the year-earlier period, more than any other segmented company in its initial earnings release .
Chief Financial Officer Amy Hood is credited with the company's big, long-term business as well as the company's cloud products. Microsoft said that its Intelligent Cloud segment grew 24% to $ 8.6 billion, compared with the year-earlier quarter. Productivity and Business Processes recorded $ 9.8 billion in first-quarter revenue and more Personal Computing accounted for $ 10.7 billion in sales.
Cloud growth comes at a price, however. Microsoft said that its capital expenditures for the quarter included $ 4.3 billion which was in part used to support assets and leases to support its growing cloud operations. It spent $ 3.6 in cash on property and equipment for the quarter.
Gaming sales grew 44% to $ 2.74 billion and the company's revenue grew 33% to $ 1.53 billion.
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