Free Research Report as Microsoft’s Q1 Results Rose on Azure Revenue Growth and Outperformed Projections

Stock
Monitor: Formula Systems (1985) Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 27,
2017 / Active-Investors free earnings report on Microsoft
Corp. (NASDAQ: MSFT) has freshly been issued to its members, and you can also
sign up to view this report at www.active-investors.com/registration-sg/?symbol=MSFT.
The Company posted its financial results on October 26, 2017, for the first
quarter of the fiscal year 2018. The Redmond, Washington-based Company’s
quarterly non-GAAP total revenues and diluted earnings per share (EPS) grew 12%
and 17% y-o-y, respectively; beating market consensus estimates. Register today
and get free access to our complimentary member’s area where many more reports
are available: www.active-investors.com/registration-sg.

Active-Investors.com is currently
working on the research report for Formula Systems (1985) Ltd. (NASDAQ: FORTY),
which also belongs to the Technology sector as the Company Microsoft. Do not
miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=FORTY.

Active-Investors.com
is focused on giving you timely information and the inside line on companies
that matter to you. This morning, Microsoft most
recent news is on our radar and we have decided to include it on our blog post.
Today’s free coverage is available at: www.active-investors.com/registration-sg/?symbol=MSFT.

Earnings
Highlights and Summary

In Q1 FY18, Microsoft
reported total revenues of $24.54 billion compared to $21.93 billion at the end
of Q1 FY17. The total revenue numbers outperformed market expectations of
$23.52 billion. The Company’s product revenues were $14.30 billion for the
reported quarter compared to $14.97 billion in Q1 FY17. Moreover, service and
other revenues surged to $10.24 billion in Q1 FY18 versus $6.96 billion in the
last year’s comparable quarter.

The software developer
reported a net income of $6.58 billion, or $0.84 per diluted share, in Q1 FY18
versus $5.667 billion, or $0.72 per diluted share, in Q1 FY17. The Company’s
diluted EPS also outperformed market earnings estimates of $0.72 per diluted
share. The Company’s double-digit top- and bottom-line growth was consistent
with the execution and ongoing investment in product innovation and sales
capacity.

Operating
Metrics

During the three months
ended September 30, 2017, the Company’s product cost of revenue was $2.98
billion compared to $3.58 billion in Q1 FY17. Microsoft’s cost of revenue
related to service and other came in at $5.30 billion compared to $4.26 billion
in Q1 FY17. The Company’s gross margin stood at $16.26 billion for Q1 FY18 versus
$14.08 billion in Q1 FY17. The Company spent $3.57 billion on research and
development in Q1 FY18 compared to $3.11 billion in the prior year’s same
quarter. Moreover, the Company’s operating income increased to $7.71 billion during
Q1 FY18 from $6.72 billion in Q1 FY17.

Segment
Performance

During Q1 FY18,
Microsoft’s Productivity and Business Processes segment’s revenue rose 28% to
$8.24 billion y-o-y from $6.44 billion in Q1 FY17. The segment’s operating income
also increased to $3.01 billion in Q1 FY18 from $2.91 billion in Q1 FY17.

The Company’s Intelligent
Cloud segment’s revenue increased 14% to $6.92 billion in Q1 FY18 from $6.10
billion in Q1 FY17. Moreover, the segment’s operating income was $2.14 billion
in Q1 FY18, up from $1.78 billion in the last year’s corresponding period.

Microsoft’s More Personal
Computing segment’s revenue came in relatively flat at $9.38 billion in Q1 FY18
from $9.40 billion in Q1 FY17. Meanwhile, the segment’s operating income increased
to $2.57 billion during Q1 FY18 from $2.03 billion in Q1 FY17.

Cash
Flow and Balance Sheet

For the three months
ended September 30, 2017, Microsoft generated $12.44 billion in cash from
operations compared to $11.55 billion at June 30, 2017. The Company had a cash
and cash equivalents balance of $6.88 billion as on September 30, 2017,
compared to $7.66 billion at the close of books as on June 30, 2017.
Furthermore, the Company had a long-term debt balance amounting to $76.26
billion as on September 30, 2017, compared to $76.07 billion as on June 30,
2017.

Dividend
and Share Repurchases

During the reported
quarter, Microsoft returned $4.8 billion to its shareholders through dividends
and share repurchases.

Stock Performance Snapshot

November
24, 2017 – At Friday’s closing bell, Microsoft’s stock marginally
advanced 0.18%, ending the trading session at $83.26.

Volume traded for the
day: 7.43 million shares.

Stock performance in the
last month – up 5.89%; previous three-month period – up 14.34%; past twelve-month
period – up 37.85%; and year-to-date – up 33.99%

After last Friday’s
close, Microsoft’s market cap was at $641.16 billion.

Price to Earnings (P/E)
ratio was at 28.17.

The stock has a dividend
yield of 2.02%.

The stock is part of the Technology
sector, categorized under the Business Software & Services industry. This
sector was up 0.6% at the end of the session.

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