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MSFT Stock Up 0.2%, Microsoft Reports Spectacular Q4 2021 Earnings

UTC by Steve Muchoki · 3 min read
MSFT Stock Up 0.2%, Microsoft Reports Spectacular Q4 2021 Earnings
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Microsoft recorded a revenue of $46.15 billion during the prior quarter versus $44.24 billion as expected by analysts according to Refinitiv.

Microsoft Corp (NASDAQ: MSFT) stock traded around $287.12, up 0.20% as of  July 27, 2021 7:59 p.m. EDT. MSFT stock closed Tuesday trading at $286.54, down 0.87% from the day’s opening price. Although the volatility was not significantly notable, Microsoft reported its fiscal Q4 2021 earnings and quarterly revenue guidance that exceeded analysts’ expectations.

Notably, the multinational technology company reported adjusted earnings per share of $2.17 versus $1.92 as expected by analysts according to a survey conducted by Refinitiv. Additionally, Microsoft recorded a revenue of $46.15 billion during the prior quarter versus $44.24 billion as expected by analysts according to Refinitiv.

Worth noting, the company’s revenue spiked by 21% year over year in the quarter that concluded on June 30.

Notably, the company’s intelligent cloud segment that includes the Azure public cloud, GitHub, SQL server, and Windows server produced a revenue of $17.38 billion. The figure was 30% higher than what the same segment recorded in the same period last year. According to a poll by StreetAccount on Wall Street analysts, the average expectation on the intelligent cloud segment was $16.33 billion.

On the side of the productivity and business processes unit that encompasses LinkedIn, Office software and Dynamics recorded a revenue of $14.69 billion during the just-concluded quarter. According to a survey conducted by StreetAccount, the productivity and business processes unit was expected to report revenue of $13.93 billion.

On the personal computing segment, Microsoft recorded a revenue of $14.09 billion against $13.74 billion expected by analysts according to a survey conducted by StreetAccount.

Microsoft Stock and Its Performance in Fiscal Q4 2021

Microsoft stock has received notable spotlight from Wall Street analysts who forecast more upwards in the foreseeable future. According to a survey conducted by MarketWatch, MSFT stock received an average of Buy rating from 38 ratings.

This can be grounded in the fact that the company is providing critical services that are needed to rebound the global economy from the Covid pandemic. Moreover, most global investors and companies are shifting to cloud-based and remote-based to ensure the longevity of their services.

According to Microsoft’s earnings report, the company forecast a higher call in the next quarter. Perhaps the main reason for a buy call from most analysts. Notably, the company expects its productivity and business processes unit to report $14.5 billion to $14.75 billion during its first fiscal quarter.

Additionally, the company said that it expects $16.4 billion to $16.65 billion from its intelligent cloud segment in the coming quarter. On the contrary, Wall Street analysts expect the company to record $15.71 billion from the intelligent cloud segment.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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