Friday, July 20th 2018

Riding on Strong Azure Performance, Microsoft Crushes Estimates, Jumps 4% in Stock Valuation

Following Microsoft's Earnings report last Thursday, the company enjoyed a smooth uphill with its stock value in after-hours trading. Riding on the strong of greater than expected Microsoft Azure Cloud earnings, Microsoft beat all estimates by a margin: earnings per share were announced at $1.14, versus $1.08 expected (GAAP), and revenue was declared at $30.1 billion, versus $29.2 billion expected. That's an extra billion dollars in revenue for all intents and purposes - and stock pricing increased by more than the additional revenue did, with investors expressing confidence on "strong guidance".

Productivity and Business Processes, with Microsoft Office, was up 13% from the year-ago period, to $9.7 billion. Intelligent Cloud, which encompasses the Microsoft Azure cloud-computing platform and related technologies, was up 23%, to $9.6 billion. And More Personal Computing, which includes Windows, the Xbox, and the Surface hardware business, was up 17%, to $10.8 billion (7% up in the Windows business alone). The Azure folder was the one with the most growth, by far: it saw revenue growth of 89% from the same period in 2017. LinkedIn revenue went up 37% from the same time last year, and gaming revenue saw a 39% increase - a boost not related to hardware, but Xbox software and services, which accounted for 36% of that figure. The Surface business is up 25% from this time last year, something Microsoft credits to both a strong hardware lineup this year and a less than stellar 2017 performance.
Sources: Business Insider, Image credit: REUTERS; Shannon Stapleton
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3 Comments on Riding on Strong Azure Performance, Microsoft Crushes Estimates, Jumps 4% in Stock Valuation

#1
ShurikN
Azure... is that the thing powered by EPYC? I remember reading about it last year or so.
Posted on Reply
#2
ssdpro
ShurikNAzure... is that the thing powered by EPYC? I remember reading about it last year or so.
Azure has been around since 2010 but as we know it now 2014. Microsoft did start using EPYC 7551 for some Lv2 VMs in late 2017. The VMs are just one compute offering of the Azure service web. Azure is actually quite extensive and profitable.
Posted on Reply
#3
notb
ShurikNAzure... is that the thing powered by EPYC? I remember reading about it last year or so.
One of the Azure products is built around EPYC (L-series VMs).
azure.microsoft.com/en-us/pricing/calculator/?service=storage

However, it's a storage machine, which is basically a worst case scenario for EPYC - very weird choice...
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