Microsoft shares initially slipped 2 percent in the extended hours on Tuesday after the software giant released its third-quarter results. However, the stock bounced back, gaining more than 4 percent, after the company issued an optimistic sales outlook for the fourth quarter.
The Washington-based tech behemoth also surpassed expectations for both earnings and revenue amid strong growth across its flagship segments. Microsoft booked a profit of $2.22 per share, compared to $2.03 per share in the linked quarter of 2021. Sales also increased to $49.36 billion, from $41.71 billion in the year-ago period. Analysts were expecting Microsoft to report a profit of $2.19 per share on sales of $49 billion.
Segment Results
Revenue from the Intelligent Cloud segment, its most lucrative business, increased to $19.05 billion, from $15.19 billion in the same period last year, beating the consensus forecast of $18.89 billion.
The Productivity and Business Solutions segment, which includes its flagship office productivity software, contributed $15.79 billion in revenue, up from $13.55 billion last year. Analysts were expecting the segment to post revenue of $15.75 billion.
In addition, revenue from the More Personal Computing segment came in at $14.52 billion, versus $13.04 billion last year. The numbers were also above the consensus forecast of $14.3 billion.
Sales Outlook
Microsoft Corporation (MSFT) expects to generate sales in the range of $52.4 billion to $53.2 billion for the fourth quarter. The outlook is almost in line with the consensus of $52.75 billion
The updated outlook apparently sent Microsoft shares up more than 4 percent in the after-hours trading session on Tuesday. Overall, the stock has struggled to gain value so far in 2022. The company’s share price is still down about 15 percent on a year-to-date basis.
Learn more about Earning Reports in the video below:
Hope this was useful for you! If so, hit the like button to make me feel good. Please note that the above content is not an investment advise and shall be considered only for informative purpose.
Feel free to share your opinions in the comments section below. Subscribe to get more unique content!
You might be also interested in:
Comments