Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Microsoft expects its revenue for the coming quarter to fall between $49.25 billion and $50.25 billion.
Although Microsoft Corporation (NASDAQ: MSFT) missed expectations in its Q4 2022 financial results, it added 5% in after-hours trading on impressive guidance over the next three months. In its fiscal fourth quarter, the tech giant said adjusted earnings per share were $2.23. Meanwhile, analysts expected $2.29 per share.
According to the quarterly results, Microsoft said revenue came in at $51.9 billion, lower than the expected $52.4 billion. Also, Productivity and Business Processes earnings were $14.4 billion against the $16.7 billion expected. Earlier predictions placed Intelligent Cloud at $21.1 billion and More Personal Computing at $14.7 billion. However, Microsoft stated in the quarterly financial results that Intelligent Cloud was $20.9 billion while More Personal Computing was $14.4 billion.
Microsoft claimed Azure and other cloud services grew 40% compared with a 46% jump in the previous quarter. Furthermore, CEO Satya Nadella said the companies inked profitable Azure deals. She boasted that the technology company is seeing “larger and longer-term commitments and a record number of $100 million-plus and $1 billion-plus deals this quarter.”
Microsoft Blames COVID Shutdown for Missing Estimates in Q4 2022 Results
Like many other companies missing consensus estimates, Microsoft blamed the unimpressive result on the Ukraine war and COVID shutdowns in China. The company also mentioned that advertisers had reduced the amount of money they spend on advertising. The tech company confidently promised to drive future growth with continued investments. Therefore, the company’s stock increased following the announcement of the quarterly results.
Looking forward, Microsoft expects its revenue for the coming quarter to fall between $49.25 billion and $50.25 billion. If the expected revenue comes in at the middle of the range, Microsoft will record a 10% revenue increase. The company further repeated its forecast from a quarter ago for the new 2023 fiscal year. Speaking in a conference call with analysts, Finance Chief Amy Hood said:
“We continue to expect double digit revenue and operating income growth in constant currency and US dollars.”
Hood added that Microsoft would elongate the server’s useful life from four years to six. The Q4 report came in the middle of challenges in the tech market. Microsoft dismissed 1% of its workforce weeks ago. The company also announced plans to slow hiring.
After its 5% gain in after-hours trading, MSFT is currently up nearly 4% in pre-market trading. At $261.28 per share, Microsoft has shed 3.95% in the last five days. The company’s stock has also tripped over 25% so far in 2022, plunging by 11.99% in a year.