Microsoft Shares Running on Profit Beat

Technology

Published: January 28, 2016 4:24 pm

Last Updated: January 13, 2020 2:24 pm

Microsoft Corp. (NASDAQ: MSFT) posted fiscal second-quarter 2016 results after markets closed Thursday. The software behemoth reported adjusted earnings per share (EPS) of $0.78 on revenues of $23.8 billion. In the same period last year, the company reported EPS of $0.71 on revenues of $26.47 billion. The consensus estimates called for EPS of $0.71 on revenues of $25.26 billion.

On a constant currency basis, quarterly revenue increased by 3% on a non-GAAP basis.

During the quarter, Microsoft returned $6.5 billion to shareholders in the form of share repurchases and dividends.

Intelligent cloud revenue rose 5% (up 11% in constant currency) and Windows OEM revenue declined 5% in constant currency. The company now claims 20.6 million subscribers to its Office 365 Consumer subscription base.

Microsoft did not offer guidance in its press release, but said that it would provide guidance during its conference call.

The consensus estimate for the company’s fiscal third-quarter EPS is $0.68 on revenues of $22.36 billion. For the full fiscal year ending in June 2016, EPS is forecast at $2.76 on revenues of $92.53 billion.

The company’s chief operating officer, Kevin Turner, said:

It was a strong holiday season for Microsoft highlighted by Surface and Xbox. Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft’s cloud technologies across Azure, Office 365 and CRM Online.

Thursday’s report pushed the share price up about 7% at $55.70 in after-hours trading. The stock closed at $52.06 and its 52-week range is $39.72 to $56.85. Prior to this release Thomson/Reuters had a consensus price target of $58.00 on the company’s shares.