Microsoft beats by $0.10, beats on revs
Reports Q3 (Mar) earnings of $0.61 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.51; revenues rose 6.5% year/year to $21.73 bln vs the $21.04 bln consensus.
Excluding the effect of foreign exchange rate changes on the GAAP amounts, on a constant currency basis, revenue and gross margin would have grown 9% and 4%, respectively, and operating income and EPS would have declined 4% and 7%, respectively.
Devices and Consumer revs of $3.47 bln vs $3.4-3.6 bln guidance
Commercial Licensing revs of $10.03 bln vs $9.7-9.9 bln guidance
Devices and Consumer revenue grew 8% (up 11% in constant currency) to $9.0 billion, with the following business highlights:
Office 365 Consumer subscribers increased to over 12.4 million, up 35% sequentially.
Windows OEM Pro revenue declined 19%, as Pro mix returned to pre-Windows XP end-of-support levels and the business PC market declined
Commercial revenue grew 5% (up 7% in constant currency) to $12.8 billion, with the following business highlights:
Commercial cloud revenue grew 106% (up 111% in constant currency) driven by Office 365, Azure and Dynamics CRM Online, and is now on an annualized revenue run rate of $6.3 billion
Windows volume licensing revenue declined 2% (up 1% in constant currency), with transactional revenue declining following the XP refresh cycle partially offset by annuity revenue growth