Microsoft Sales Reached Nearly $52 Billion – E24

Microsoft Sales Reached Nearly  Billion – E24

The tech giant’s progress is weaker than expected in both top and bottom earnings.

Posted:

Microsoft generated $51.9 billion in sales in the first quarter, and ended with an operating profit of $20.5 billion. This was revealed in the company’s quarterly report, which was presented shortly after the close on Wall Street.

The result ended up at $16.7 billion, up 2% from the previous year. The result ended up at $2.23 per share.

In a dynamic environment, we saw strong demand, took stock and strengthened the customer relationship with our cloud platform, Chief Financial Officer Amy Hood says in a comment.

Revenue was previously expected to be $52.45 billion, with earnings per share of $2.29, according to estimates obtained by Bloomberg.

45 minutes after the numbers were released, Microsoft stock was down 0.16 percent.

Microsoft has had inconsistent fiscal years, and this is its fourth and final fiscal quarter in fiscal 2022. Microsoft’s fourth fiscal quarter ran from April 1 to June 30.

As we now begin a new fiscal year, we remain committed to balancing operations with continued investments in strategic key areas to drive future growth, Hood says.

Affected by the strength of the dollar

At the beginning of June, Microsoft revised its forecast for the fourth fiscal quarter, due to the fact that a strong dollar exchange rate makes business outside the United States less profitable. At the time, the company projected that the result would be $0.25 per share lower than previously expected due to the dollar exchange rate.

See also  Gasoline and fuel prices | New jumps in pumping prices: here is the explanation

The report indicated that revenues were weaker by 595 million dollars in the first quarter due to the strength of the dollar. This contributed to a $0.04 drop in the stock’s result.

Moreover, the demand for computers has fallen sharply recently. In the April-June period, deliveries fell 12.6 percent, according to analysis agency Garner.

He writes that it represents the largest drop in nearly a decade The Wall Street Journal Who mentioned the analysis for the first time.

Microsoft wrote that the halt in production in China in May and a weaker PC market negatively impacted revenue by $300 million for Windows OEM, the division that supplies operating systems for PCs. Windows OEM saw revenue decline 2% in the quarter.

Growth in the cloud

Revenue from the company’s so-called “smart” cloud products increased 20 percent in the first quarter to $20.9 billion. This is slightly below analysts’ expectations of 21.07 billion.

Server and cloud products increased 22 percent, driven by 40 percent revenue growth for Azure and other cloud services.

The tech giant also said the decision to scale back operations in Russia contributed to a $126 million cost in the quarter.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *