Published: Fri, February 02, 2018
Research | By Clarence Powell

Microsoft earnings: 96 cents per share, vs expected EPS of 86 cents

Microsoft earnings: 96 cents per share, vs expected EPS of 86 cents

Its cloud services and storage business, which includes server software and Azure, grew 15% year over year. For its Q2 2018 results, Microsoft announced revenues were up to the tune of $28.9 which is a net result of a 12% increase for the quarter as well as a 56% year-over-year cloud revenue growth that brought in $5.3 billion for the company.

The revenue of Office commercial products and cloud services, including Office 365 commercial showed a growth of 10%, while the Office consumer products and services revenue grew 12%. Enterprise Mobility is a strong growth area for Microsoft and their installed base increased to 60 million already. The revenue was $28.9 billion and the operating income was $8.7 billion.

MICROSOFT NEEDS TO KICK a few sales folks in the posterior as its PC business remained stagnant in the second quarter despite the launch of three new Surface models a year ago.

Facebook said that it had 2.13 billion monthly active users and 1.4 billion daily users.

In the most recently completed quarter, Microsoft's business products and services segment, which now includes LinkedIn, was the star, with revenue growing 25% year-over-year.

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For the last three months of 2017, the company booked a $13.8 billion charge linked to the U.S. tax reforms passed at the end of previous year.

Dynamics also saw strong growth, with products and cloud services up 10% (9% CC), and Dynamics 365 up 67% (68% CC). The share price fell about 1.2 per cent to US$93.85 in after-hours trading after the results were posted. Analysts were calling for revenue of $7.51 billion in this segment, per FactSet.

While Azure's growth is (partially) there to see, Microsoft has over recent months placed a greater emphasis again on on-premise infrastructure, with the launch of Azure Stack.

"Our sales team and channel partners delivered another quarter of outstanding commercial results, even as we continued to work through our sales reorganization from July", Microsoft CFO Amy Hood said during the quarterly call Wednesday. Revenue from Surface hardware was little changed from a year ago, and gaming revenue rose 8%, fuelled by the release of the high-end Xbox One X console.

"Our investments in IoT, data, and AI services...position us to further accelerate growth".

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