Microsoft posted revenue of $38 billion, up 13%, beating Wall Street’s expectations for its fiscal fourth quarter ended June 30.
The company’s profits fell 15% to $11.2 billion, reflecting a $450 million charge from closing Microsoft Stores and an unusual $2.6 billion tax benefit in the prior quarter.
Excluding extraordinary events and charges, profits would have been up 5% for the quarter, the company said. Earnings per share of $1.46 beat expectations of $1.37/share.
The COVID-19 pandemic and related stay-at-home orders boosted the company’s productivity, cloud and gaming businesses, including subscription versions of Microsoft Office, and the Microsoft Azure cloud platform. Revenue from Xbox content and services was up 68% for the quarter.
However, traditional Office software licensing continued to suffer, and the company said LinkedIn and search advertising were impacted negatively due to the slowdown in jobs and the economy.
Microsoft shares are down more than 2% in after-hours trading. Revenue growth in Azure was 47%, a smaller percentage increase than in recent quarters.
Developing story, more to come.
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