Microsoft Beats Analyst Estimates with Quarterly Earnings

July 20, 2018
1040 Views

Microsoft (NASDAQ: MSFT) has repeatedly been labeled as one of the tech stocks to buy in 2018, based on excellent quarterly reports, as well as a high level of investor confidence. Microsoft is one of the oldest technology companies on the stock market, and one of the most successful.

The most recent figures provide yet another reason why Microsoft shares should be in your portfolio, especially considering that the company raised revenue to record levels and broke all analyst estimates.

Figures Up for One of the Most Successful Years in Microsoft’s History

It released their latest figures on Thursday, revealing $30.1B in sales revenue and $8.9B in net income. This is a significant improvement from the $25.6B in revenue from the same quarter a year ago, and it contributes to a total of $110B in revenue over the last four quarters. This is the first time that Microsoft has hit more than $100B in revenue in a full fiscal year, and it sent investor confidence up during Thursday trading.

The company has grown all areas of their business during the fiscal year:

  • Office Commercial Products and Cloud Service Revenue are up 10%
  • Office Consumer Products are up 8%
  • Microsoft Intelligent Cloud Business is up 23%
  • Xbox Gaming is up 39%
  • Windows OEM revenue is up 7%
  • Windows Commercial Products are up 23%

To be operating a business with not a single weak link in the product and service lineup is staggering for a company the size and scope of Microsoft. Even LinkedIn, it’s social media network, grew revenue by 37% through premium services and advertising revenue.

Much of this recent growth has been attributed to the leadership of Satya Nadella, who is successfully transitioning the company from a traditional software developer model, to a cloud-based infrastructure and Software as a Service (SaaS) model.

The company gave investors even more to be happy about, with a call on Thursday that projected $27.35B to $28.05B for the first quarter of the new fiscal year.

Excellent Stock Growth in The Last 12 Months Means Microsoft Still Receives a BUY Rating

  • 3 Month Growth: 89%
  • YTD Growth: 05%
  • 12 Month Growth: 48%

Top analysts agree that Microsoft is still a BUY stock. Growth statistics are impressive, and shares should be strongly considered for any diversified investment portfolio.

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