Investing.com - Microsoft (NASDAQ:MSFT) shares slid more than 4% after hours following less-than-stellar quarterly resutls. The company reported a slight beat on fiscal-second-quarter earnings but a slight miss on revenue.
After Wednesday's close, the software giant reported non-GAAP earnings per share of $1.10 on revenue of $32.47 billion. Analysts polled by Investing.com had forecast EPS of $1.09 on revenue of $32.53 billion, up 12% from a year ago. A year ago, Microsoft reported 96 cents a share on revenue of $28.92 billion. The company said it earned $1.14 a share on revenue of $29.08 billion in the company's first-fiscal quarter.
On a GAAP basis, Microsoft reported $1.08 a share, up from a loss of 82 cents a share that reflected a $13.8 billion related to the 2017 tax act.
Shares were off 4% to $102.10 at 4:59 PM ET (22:59 GMT). The shares had risen 3.3% to $106.38 in regular trading.
Revenue in its Intelligent Cloud business, which includes its Azure cloud operations, was up 20% from a year ago, with operating income up 15.8% from a year ago. The Azure operations saw 76% year-over-year revenue growth, similar to the first quarter, but down from 98% growth a year ago. The company sees cloud computing and Azure as key components of its future growth.
Revenue in its Productivity and Business Process businesses grew 11% to $10.1 billion with operating income rising 20.3% to $4 billion. But revenue growth slowed in its Office Consumer Products business to just 1% from a year ago, Its Office 365 subscription business now has 33.3 million subscribers, up from 29.2 million a year ago and 32.5 million in the first quarter.
Revenue in its LinkedIn (NYSE:LNKD) business was up 29%, although Microsoft didn't break out numbers.
Revenue in its Surface tablet business came in up 39% at $1.86 billion thanks to new models and splashy deals. This year, law-school applicants will take the LSAT exam on specially-programmed Surface units.
Microsoft finished the quarter with $127.7 billion in cash and equivalents, down 4.6% from a year ago.