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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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