Please select the second broker
Azure drives Q3 beats for Microsoft (MSFT) but shares dip 4%
Microsoft (MSFT) posted a strong fiscal Q1 report on Wednesday, but weaker-than-expected guidance sent shares lower amid a broader stock sell-off.
Microsoft (MSFT) shares dipped 3.85% in Wednesday’s trading even though the tech giant’s Q3 report handily beat Wall Street expectations on revenue and earnings as its cloud-based division Azure continues to drive growth.
Before markets opened in midweek, Microsoft posted $1.82 earnings per share and $37.2bn revenue for the three-month period ending 30th September versus the $1.54 and $35.7bn FactSet consensus.
Microsoft’s benchmark cloud computing service Azure had a stellar quarter as revenues soared 48%, while its commercial cloud division brought in $15.2bn.
Operating margins were also strong, rising to 43% as expenses decreased 3% due to savings related to COVID-19.
CEO Satya Nadella said that the last months had showcased the company’s ability to be resilient and support new ways of doing business.
He noted: “Even the smallest of businesses need to be able to deploy a solution quickly for some workflow that allows them, say, for example, to do curbside pickup if you’re a retailer and a small business.”
While the report was impressive, Microsoft did underwhelm with its guidance for the current quarter.
The Seattle-based company expects revenue to fall between $39.5bn and $40.4bn for its fiscal Q2, which fell short of the $40.5bn FactSet consensus.
Investors had been expecting a bit more with the launch of next-generation Xbox gaming consoles in November.
BMO Capital Markets saw enough to continue with an outperforming rating though.
Analyst Keith Bachman, who also offered a $245 price target, said that Microsoft should be viewed as a “core software holding” as it continues to deliver steady growth.
Microsoft shares struggled to gain traction amid a wider sell-off on Wall Street on Wednesday.
MSFT was trading 4.26% lower at $204.23 at around 1:10pm ET on the Nasdaq.
Scam Brokers, Broker Complaints
Are you aware of a scam broker or want to make a broker complaint?
We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.
We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.
We use the information you give us to decide if we want to continue to promote a broker on our site.
Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.