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Microsoft stock price soars past 1999 record high after strong fiscal Q1 earnings

•The company reported adjusted first-quarter earnings of 76 cents a share on revenues of $22.33 billion. Analysts had expected earnings of 68 cents a share on revenues of $21.71 billion. 

•Microsoft reported strong margin (49%) on its growing commercial cloud business, growing rapidly from the 42% it reported last quarter. Those facts were probably big reasons the stock rose 6% in after hours trading to its highest level ($59.97) since 1999. 

•Microsoft said the strong earnings are related to strong sales of its cloud-based services. “We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” said Microsoft CEO Satya Nadella. 

•Revenues from Microsoft’s cloud storage and services offering, Azure, grew 116 percent during the quarter. Microsoft’s “intelligent cloud” business accounted for $6.38 billion of total revenues, the company said.

•The LinkedIn acquisition will close in the second fiscal quarter of 2017, the company said. 

•The earnings announcement comes just ahead of an October 26 event where Microsoft is expected to announce some new products and possibly some upcoming enhancements to the Windows 10 OS.MS