Softy (MSFT Earnings)
Microsoft (MSFT) will report fiscal 2019 fourth quarter (June) results this afternoon and management will host a call at 17:30.
Analysts the software giant expect Q4 EPS up 7% to $1.21 with revenue up 9% to $32.8 billion.
Microsoft guided for Q4 revenue of $32.2-32.9 bln, broken down into Productivity and Business Processes revenue of $10.55-10.75 bln, Intelligent Cloud revenue of $10.85-11.05 bln and Personal Computing revenue $10.8-11.1 bln, with COGS $10.65-10.85 bln and operating expenses of $10.7-10.8 bln.
The company will provide segment revenue guidance for Q1 on the conference call. The Street expects Q1 EPS +5% to $1.20 with revenue up 10% to $32.06 bln.
Microsoft has exceeded earnings estimates for twelve consecutive quarters.
MSFT has a $1.03 trln market cap and is the largest publicly traded company in the world.
The stock is up 33% year-to-date and trades at 26.5x fiscal 2020 adjusted earnings estimates.
RESULTS:
Microsoft beats by $0.16, beats on revs in all three segments; guides next quarter rev and FY20 op-ex on the call (136.42 +0.15)
Reports Q4 (Jun) earnings of $1.37 per share, $0.16 better thanthe S&P Capital IQ Consensus of $1.21; revenues rose 12.1% year/year to $33.72 bln vs the $32.8 bln S&P Capital IQ Consensus.
Revenue in Productivity and Business Processes was $11.0 billion vs. $10.55-10.75 bln guidance and increased 14% (up 17% in constant currency), with the following business highlights:
Office Commercial products and cloud services revenue increased 14% (up 16% in constant currency) driven by Office 365 Commercial revenue growth of 31% (up 34% in constant currency)
Office Consumer products and cloud services revenue increased 6% (up 8% in constant currency) and Office 365 Consumer subscribers increased to 34.8 million
LinkedIn revenue increased 25% (up 28% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 22%
Dynamics products and cloud services revenue increased 12% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 45% (up 48% in constant currency)
Revenue in Intelligent Cloud was $11.4 billion vs. $10.85-11.05 bln guidance and increased 19% (up 21% in constant currency), with the following business highlights:
Server products and cloud services revenue increased 22% (up 24% in constant currency) driven by Azure revenue growth of 64% (up 68% in constant currency)
Enterprise Services revenue increased 4% (up 6% in constant currency)
Revenue in More Personal Computing was $11.3 billion vs. $10.8-11.1 bln guidance and increased 4% (up 6% in constant currency), with the following business highlights:
Windows OEM revenue increased 9% (up 9% in constant currency)
Windows Commercial products and cloud services revenue increased 13% (up 16% in constant currency)
Surface revenue increased 14% (up 17% in constant currency)
Search advertising revenue excluding traffic acquisition costs increased 9% (up 10% in constant currency)
Gaming revenue declined 10% (down 8% in constant currency) with Xbox software and services revenue down 3% (down 1% in constant currency)
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