REDMOND, Wash. (AP) — Microsoft reported quarterly earnings Tuesday that beat Wall Street expectations, as it continued to weather the coronavirus pandemic amid increased demand for its flagship software and services.
The company reported fiscal first-quarter profit of $13.9 billion, or $1.82 per share, beating Wall Street expectations of $1.54 a share. Microsoft posted revenue of $37.2 billion in the July-September period, up 12% from last year. Analysts had been looking for revenue of $35.8 billion, according to FactSet.
The software giant has benefited from a COVID-19-fueled trend of working and learning from home that boosted demand for its cloud computing services and workplace productivity products, such as email and video conferencing. It’s also experienced heightened demand for its Xbox gaming system.
The company's growth was led by its commercial cloud segment, which grew 31% from the previous year to generate $15.2 billion in revenue, said Amy Hood, Microsoft's chief financial officer.
Revenue from the company's Xbox content and services grew 30% as the company next month prepares to launch its first new console since 2013. Preorders began in September.
Before you consider Microsoft, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list.
While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for April 2024. Learn which stocks have the most short interest and how to trade them. Click the link below to see which companies made the list.
Get This Free Report