Microsoft sales lifted by the cloud
Microsoft continues to look to the cloud as it releases first quarter earnings.
Lifted by strong momentum in its Internet cloud-based offerings, Microsoft on Thursday said its fiscal first-quarter revenue jumped to $23.2 billion, topping Wall Street estimates.
The company said it earned 54 cents a share, or $5.84 billion. Analysts had expected Microsoft to earn 49 cents a share, down from 62 cents, or $5.2 billion, a year ago, according to Yahoo Finance. Revenue expectations were $22 billion.
The results included the impact of restructuring related to deep cuts announced in July at its Nokia division.
“We are off to a great start to the year,” Microsoft CEO Satya Nadella said on a conference call with analysts.
Shares of Microsoft MSFT popped after hours, trading up as much as 4%. The stock closed in regular trading Thursday at $45.02.
The consumer division, which includes devices, saw revenue growth of 47% to $10.96 billion, Microsoft said. Among highlights, Office 365 Home and Personal subscribers totaled more than 7 million, up more than 25% over the fourth quarter of 2014.
Ahead of the announcement, Forrester analyst Frank Gillett said such growth is key as Microsoft moves “away from the old PC and software licensing model.”
Its Windows Phone had a 4.8% share of the U.S. market last year and is expected to decline slightly, according to eMarketer.
IDC analyst Al Hilwa called it a “much better quarter for Microsoft than many expected.”
Source: Usatoday-Microsoft sales lifted by the cloud
