Microsoft profits and revenue rises; 23 percent gain in share prices

Microsoft profits and revenue rises; 23 percent gain in share prices

And the good news kept on coming when Microsoft management reportedly predicted continued growth for its cloud computing business.

Microsoft shares have risen 23 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 17 percent.

Fortunately, shares seem to be climbing once again with highs of $130.37 in pre-market trading at the time of writing, according to Android Police.

"Leading organizations of every size in every industry trust the Microsoft cloud", chief executive Satya Nadella said in a statement. At present Azure is following Amazon for cloud services, and leads Google's own products and services.

But growth in the unit dipped to 73 percent in the latest reported quarter.

- Revenue for Intelligent Cloud was $9.7 billion, a 22% increase year-over-year.

More Personal Computing unit sales, including Windows and Xbox products, will grow to $10.8 billion to $11.1 billion in the current quarter, Hood said.

Microsoft earned $1.14 per share, exceeding analyst expectations of $1.00 earnings per share.

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Net income rose to US$8.81 billion, or US$1.15 per share, from US$7.42 billion, or 96 U.S. cents per share, a year earlier.

Microsoft Corp on Wednesday reported an 18 per cent year-on-year increase in its net income to $8.8 billion for fiscal third quarter ended 31 March 2019 and a 14 per cent increase in quarterly revenue to $30 billion.

Microsoft's stock market value has topped $1tn (£775bn) for the first time as Wall Street cheered better than expected results for the United States software giant.

Total revenue rose 14 percent to US$30.57 billion, beating analysts' average estimate of US$29.84 billion according to IBES data from Refinitiv.

The company's report appears to have pleased investors: After closing slightly down on the day after-market trading saw the company's stock jump 4.38 percent - enough to give the company a temporary boost to a market capitalisation above $1 trillion, though it settled slightly below this before trading ceased.

Operating income was $10.3 billion and increased 25%.

That helps Microsoft, which generally sells business customers a pricier version of Windows and has many of its corporate clients on a regular licence for updates. Known as Azure, the service has been growing over recent years but is still behind Amazon's AWS. Surface will generate double-digit growth, while Gaming revenue is expected to decline. Windows revenues from PC makers grew 15 percent overall, but consumer revenues were down 1 percent, so all of the growth came from businesses.

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