>>> Microsoft beats by $0.46, beats on revs --> MSFT +0.65% in Qfter Hours

Microsoft beats by $0.46, beats on revs (213.25 +3.17)
  • Reports Q1 (Sep) earnings of $1.82 per share, $0.46 better than the S&P Capital IQ Consensus of $1.36; revenues rose 12.4% year/year to $37.15 bln vs the $35.78 bln S&P Capital IQ Consensus.
  • Co will guide for Q2 (Dec) on the call today.
    • Productivity and Business Processes segment revenue rose 11% yr/yr to $12.3 bln vs prior guidance of $11.65-11.90 bln.
      • Office Commercial products and cloud services revenue increased 9%;
      • LinkedIn revenue rose 16%; Dynamics products and cloud services rose 19%.
    • Intelligent Cloud segment revenue rose 20% to $13.0 bln vs prior guidance of $12.55-12.80 bln.
      • Server products and cloud services revenue increased 22%, driven by Azure revenue growth of 48% yr/yr.
    • More Personal Computing segment revenue rose 6% to $11.8 bln vs prior guidance of $10.95-11.35 bln.
      • Windows OEM revenue fell 5%; Windows Commercial products and cloud services revenue increased 13%.
      • Xbox content and services revenue increased 30%.
      • Surface revenue increased 37%.
      • Search advertising revenue excluding traffic acquisition costs decreased 10%.
  • Co says demand for its cloud offerings drove a strong start to the fiscal year with commercial cloud revenue generating $15.2 billion, up 31% yr/yr.