MSFT Shares Surge After Cloud-Driven Top- And Bottom-Line Beats

MSFT Shares Surge After Cloud-Driven Top- And Bottom-Line Beats

Update (1635ET): After an initial shrug, MSFT shares are surging after hours, up over 2%…

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Microsoft ‘delivered’ but shares are shrugging at the moment after the giant tech firm beat top- and bottom-lines handily:

Revenue $45.3 billion, +22% YoY (better than the +21% YoY in the prior Q), estimate $43.94 billion (range $42.68 billion to $44.77 billion)

EPS $2.71 vs. $1.82 y/y, estimate $2.07 (range $1.97 to $2.17) (unsure if comparable)

The driver of the big gains was Microsoft’s Intelligent Cloud segment, which comprises the Azure public cloud, enterprise services, GitHub, SQL Server, System Center, Visual Studio and Windows Server, delivered $16.96 billion in revenue, which was up 31% year over year (better than the $16.51 billion consensus estimate).

“Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity,” said Satya Nadella, chairman and chief executive officer of Microsoft.

“The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”

MSFT shares initially jumped, then tumbled, then jumped back higher and are chopping around unch for now…


 

Priced for perfection?

Tyler Durden
Tue, 10/26/2021 – 16:15

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