Software leader Microsoft (MSFT) late Tuesday cruised past Wall Street’s targets for the June quarter and guided higher for the current period. Microsoft stock rose in extended trading.
The Redmond, Wash.-based company earned $2.17 a share on sales of $46.2 billion in its fiscal fourth quarter ended June 30. Analysts had predicted Microsoft earnings of $1.92 a share on sales of $44.2 billion. On a year-over-year basis, Microsoft earnings rose 49% while sales increased 21%.
The company cited robust sales of Microsoft’s cloud computing services for its outperformance.
For the September quarter, Microsoft expects to generate sales of $43.75 billion, up 18% from the same period last year. That’s based on the midpoint of its guidance. Wall Street had predicted $42.5 billion in sales for Microsoft’s fiscal first quarter.
Microsoft Stock Rises Late
“Accelerating digital transformation and consistent, strong execution should drive another quarter of growing commitment to our Microsoft cloud,” Chief Financial Officer Amy Hood said on a conference call with analysts.
Microsoft’s commercial cloud sales increased 36% year over year to $19.5 billion in the June quarter, she said.
In after-hours trading on the stock market today, Microsoft stock initially dropped, but it rallied after the company gave its guidance. In recent trades, Microsoft stock was up 1.2%, near 289.85. During the regular session Tuesday, Microsoft stock dipped 0.9% to 286.54.
Intelligent Cloud Leads Growth
Microsoft’s Intelligent Cloud business unit was the company’s top performer in the June quarter. Revenue in the segment increased 30% to $17.4 billion. The unit includes server products and cloud services. Revenue from Azure cloud infrastructure services rose 51% in the period.
Microsoft’s Productivity and Business Processes unit saw sales rise 25% to $14.7 billion. The division includes Office productivity software as well as the Dynamics and LinkedIn businesses.
And lastly, Microsoft’s More Personal Computing unit posted a 9% increase in sales to $14.1 billion in the June quarter.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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