Microsoft's commercial growth picks up; Nokia unit pressures EPS

Microsoft's (NASDAQ:MSFT) Commercial revenue rose 11% Y/Y in FQ4 to $13.48B, an improvement from FQ3's 7% growth. Commercial cloud revenue +147% ($4.4B/year run rate), Windows volume licensing +11%, enterprise services +11%, SQL Server and System each up double-digits.

Thanks to two months of Nokia phone revenue, devices & consumer revenue rose 42% to $10B. Windows OEM revenue +3%, with Pro revenue rising 9% and non-Pro revenue falling 9%.

Office consumer revenue +21%, with the Office 365 home/personal sub base growing by over 1M to 5.6M+. Bing search ad revenue rose 40%, but display ad sales fell 11%.

The Nokia unit contributed $1.99B in revenue, but only $54M in gross profit. It took an $0.08 toll on EPS. On the other hand, the end of Microsoft's commercial agreement with Nokia provided a $382M one-time op. profit boost.

MSFT +0.2% AH. CC at 5:30PM, guidance will be provided.

FQ4 results, PR

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Comments (2)
  • wil3714
    , contributor
    Comments (2351) | Send Message
    Not a bad quarter but it was messy with Nokia. Commercial rev very strong and will continue to do so in improving enterprise and bus environment
    22 Jul 2014, 04:34 PM Reply Like
  • june1234
    , contributor
    Comments (4418) | Send Message
    Nokia came and went . Maybe son of Nokia down the road?
    23 Jul 2014, 05:46 AM Reply Like
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