Microsoft: the outlook is reassuring

If Microsoft unveiled disappointing profits, it reassured investors with its outlook. In the fourth quarter, which ended in late June, the computer giant saw its net profit increase by 2% to 16.7 billion dollars, or 2.23 dollars per share. The consensus stood at $2.29. Turnover reached 51.86 billion dollars, up 12% (+16% at constant exchange rates) over one year, while analysts expected 52.38 billion dollars.

The Redmond, Washington-based firm benefited from increased activity in its Intelligent Cloud division, which oversees server-related products and services, such as Windows Server, SQL Server and Azure (commercial cloud). It saw its sales jump 20% (25% at constant exchange rates) to $20.9 billion. Wall Street, however, anticipated 21.086 billion.

Highly watched by analysts, Azure saw its sales increase by 40% in raw data against 46% the previous quarter. They increased by 46% at constant exchange rates, compared to 49% in the previous quarter.

The Productivity and Business Processes division, which also includes Office 365 Commercial, Dynamics (business solutions) and Skype, posted revenue up 13% (17% at constant exchange rates) to $16.6 billion.

The More Personal Computing division (Windows, Xbox, etc.) recorded revenue up 2% to $14.4 billion.

The good news came from the outlook for the new fiscal year. Microsoft is targeting double-digit revenue and operating profit growth.

source: AOF

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