Microsoft (MSFT) Shares tumbled Wednesday after the software giant beat Wall Street’s goals for the first quarter of its fiscal year, but it was far short of views for the current period. MSFT stock fell more than 7% on the news.
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The Washington-based Redmond company said late Tuesday that it earned $2.35 per share on sales of $50.1 billion in the quarter ended September 30. Analysts polled by FactSet had forecast Microsoft’s earnings of $2.31 per share on sales of $49.7 billion. Year-over-year, Microsoft’s profits increased 4% with sales increasing 11%.
Microsoft credited its cloud computing services with better-than-expected results. However, its Azure infrastructure business has grown at a slightly lower rate than expected.
“Microsoft Cloud revenue for the quarter was $25.7 billion, an increase of 24% (up 31% in constant currency) year-over-year,” said Amy Hood, Microsoft Cloud CFO. new version. “We continue to see strong demand across our businesses including another quarter of strong bookings as we deliver compelling customer value.”
Microsoft stock fell late
For the current quarter, Microsoft expects sales of $52.35 billion to $53.35 billion. The midpoint of $52.85 billion was well below Wall Street’s target of $56.2 billion for the December quarter.
In the morning trading on stock market todayMSFT stock fell 7.1% to 232.80. During the regular session on Tuesday, MSFT stock rose 1.4% to close at 250.66.
Among Microsoft’s three business segments, Intelligent Cloud was the best performer in the September quarter. Revenues in this segment increased 20% year-over-year to $20.3 billion. The module includes server products and cloud services such as Azure.
Microsoft’s Productivity and Business Operations unit saw sales increase 9% to $16.5 billion. The department includes Office productivity software as well as Business Dynamics and LinkedIn.
Microsoft’s Personal Computing unit was lagging, with revenue dropping just a tiny bit to $13.3 billion. The unit includes software for Windows PC, Xbox video games, Surface PCs, online search, and ads.
MSFT Stock ranks first in the group
Prior to Microsoft’s earnings report, analysts expressed concerns that Weakening the PC market will hinder its results.
computer based post stock, Logitech International (LOGI), rose on Tuesday after the peripheral maker matched Wall Street’s North American earnings target September quarter It maintained its sales and earnings targets for fiscal year 2023. However, it missed sales in the September quarter and views as foreign exchange rates were affected.
Logitech stock jumped 11% to 50.64 Tuesday.
MSFT stock ranks first among seven stocks in IBD’s desktop software industry group, according to IBD stock check. but she’s humble IBD Compound Classification out of 65 out of 99.
The complex classification for IBD combines five separate proprietary classifications into one easy-to-use classification. The best growth stocks have a composite rating of 90 or better.
Follow Patrick Seitz on Twitter at Tweet embed For more stories about consumer technologies, software and semiconductor stocks.
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