Microsoft Corporation (NASDAQ:MSFT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.
Microsoft Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 20% to $0.72 in the quarter versus EPS of $0.60 in the year-earlier quarter.
Revenue: Rose 17.71% to $20.49 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Microsoft Corporation reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.68. It missed the average revenue estimate of $20.56 billion.
Quoting Management: “The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype,” said Steve Ballmer, chief executive officer at Microsoft. “While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”
Key Stats (on next page)…
Revenue decreased 4.51% from $21.46 billion in the previous quarter. EPS decreased 5.26% from $0.76 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.81 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $2.86 to a profit of $2.74 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)