Seeking Alpha
 

Microsoft Corporation (MSFT)

- NASDAQ
  • Jul. 22, 2014, 4:18 PM
    • 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
    | 2 Comments
  • Jul. 22, 2014, 4:08 PM
    • Microsoft Corporation (NASDAQ:MSFT): FQ4 EPS of $0.55 misses by $0.06.
    • Revenue of $23.38B (+17.3% Y/Y) beats by $270M.
    • Press Release
    | 2 Comments
  • Jul. 21, 2014, 5:35 PM
  • Jun. 12, 2014, 4:26 PM
    • Citing stronger-than-expected business PC demand, Intel (INTC) now expects Q2 revenue of $13.4B-$14B, better than prior guidance of $12.5B-$13.5B and a $13B consensus.
    • Moreover, the chip giant now expects "some revenue growth" for the whole of 2014, after previously guiding for flat sales; the consensus is for 0.7% growth.
    • Full-year R&D/MG&A spending guidance has been upped by $300M to $19B-$19.4B.
    • The guidance hike follows several quarters of narrowing PC shipment declines, thanks in large part to healthy corporate demand. Windows 7 system purchases tied to Microsoft's decision to end Windows XP support have played a key role.
    • Other PC industry names are up in sympathy: MSFT +1% AH. AMD +1.4%. HPQ +0.8%. NVDA +0.7%.
    | 33 Comments
  • Apr. 24, 2014, 6:09 PM
    • Microsoft (MSFT) guides on its CC for FQ4 revenue of $20.4B-$21B, slightly below a $21.04B consensus. The company's FQ3 guidance proved conservative, and investors are assuming as much for its FQ4 outlook.
    • The revenue outlook for individual reporting groups: devices & consumer licensing $4.1B-$4.3B, D&C hardware $1.3B-$1.5B, D&C other $1.9B, commercial licensing $11B-$11.2B, commercial other $2.1B.
    • Xbox channel inventory drawdown is expected to impact D&C hardware, and a lower impact from Win. 7 upgrades caused by the end of XP support will affect D&C licensing. Commercial other is expected to see ~10% Q/Q growth on the back of cloud services (Office 365, Azure) demand.
    • Opex is expected to grow 4% Y/Y to $8.4B-$8.6B after adjusting for an EU fine. Capex is expected to total $1.5B (cloud investments), and unearned revenue to grow in line with seasonality. A tax rate of 18%-20% is forecast.
    • Microsoft's unearned revenue balance rose 14% Y/Y in FQ3 to $19.5B, topping guidance and exceeding FQ2's 12% clip. Bookings rose 6%, down from FQ2's 12%. The company's contracted but not billed balance closed above $22B (up over $1B Y/Y).
    • MSFT +2.7% AH. FQ3 results, details, earnings slides (.ppt), guidance (.ppt), prepared remarks (.doc)
    | 6 Comments
  • Apr. 24, 2014, 4:24 PM
    • Microsoft's (MSFT) Commercial revenue grew 7% Y/Y in FQ3 to $12.7B, a little below FQ2's 10% clip. Devices & Consumer revenue grew 12% to $8.3B after growing 13% in FQ2.
    • Commercial Licensing (50% of revenue, 65% of gross profit) sales +10% vs. +7%, with Windows volume licensing up 11% and and key server productivity offerings (Lync, SharePoint, Exchange) collectively growing double-digits.
    • Commercial Other +31% vs. +28%; 100% and 150% respective increases for Office 365 and Azure fueled the growth. The division is now nearly 10% of revenue, but still makes up less than 4% of gross profit (lower cloud margins).
    • D&C licensing rose 1% after falling 6% in FQ2, thanks in part to stabilizing PC sales; Windows OEM revenue rose 4%.
    • D&C hardware +41% (thanks to Xbox One sales) ahead of the Nokia deal's closing; Surface revenue totaled just $500M. D&C Other +18%; Office 365 Home added almost 1M subs, raising its total base to 4.4M.
    • Drops in sales/marketing and G&A spend led opex to fall 7% Y/Y to $7.49B. That boosted EPS, as did $1.8B in buybacks.
    • Satya Nadella hosts his first CC at 5:30PM ET, guidance will be provided.
    • MSFT +2% AH. FQ3 results, PR.
    | 7 Comments
  • Apr. 24, 2014, 4:05 PM
    • Microsoft Corporation (MSFT): FQ3 EPS of $0.68 beats by $0.05.
    • Revenue of $20.4B (-0.4% Y/Y) in-line.
    • Shares +2%.
    • Press Release
    | 2 Comments
  • Apr. 24, 2014, 12:10 AM
  • Apr. 23, 2014, 5:35 PM
  • Jan. 24, 2014, 12:32 PM
    • With equities getting routed today, Microsoft (MSFT +2.9%) has given back a chunk of the AH gains it saw following yesterday's FQ2 beat, but is still soundly outperforming.
    • By and large, the sell-side is pleased with Microsoft's enterprise strength, hardware sales, and cost controls. Credit Suisse has upped its PT to $42.50 from $40, while predicting Windows profitability and growth will improve in the next two quarters. It also expects Azure/Office 365 will generate "meaningfully higher" lifetime sales and profits than traditional licenses, in spite of near-term revenue cannibalization.
    • Jefferies is reiterating a Buy and $42 PT, and sees the "option value" on the Windows business (expected by the firm to decline 7.5%/year perpetually) rising following better-than-feared FQ2 numbers. But Goldman, which has been bearish since April, thinks FY14/FY15 estimates will keep dropping.
    • On the CC (transcript), CFO Amy Hood stated the macro environment is "a little better than [Microsoft] thought," and that enterprise Windows sales are benefiting both from Win. 7 upgrades and a shift towards more costly enterprise SKUs.
    • She also mentioned Microsoft was able to beat gross margin expectations in spite of a larger hardware mix by lowering costs in other areas, and claimed share gains in database (SQL Server) and systems management software (System Center).
    • More on Microsoft's FQ2
    | 10 Comments
  • Jan. 23, 2014, 6:24 PM
    • Microsoft (MSFT) guides on its FQ2 CC for its various reporting segments to collectively post FQ3 revenue of $20B-$20.5B. That compares with a $20.47B consensus. Given two straight quarters of solid revenue beats, investors might view the guidance as conservative.
    • The software giant is also lowering its FY14 (ends June '14) opex guidance range to $31.2B-$31.5B from a prior $31.3B-$31.9B, and cutting its FY14 capex budget by $500M to $6B. Microsoft's original capex budget wasn't well-received when first issued.
    • Microsoft isn't shy about highlighting its FQ2 enterprise numbers: The company states server product sales rose 12% Y/Y, and Office Commercial and Windows volume licensing sales 10% apiece. It also estimates Hyper-V gained 5 points of virtualization share; Hyper-V has been taking share from VMware's (VMW) market-leading vSphere platform for some time.
    • Office consumer sales fell 24% Y/Y,; Microsoft attributes 2/3 of the drop to a shift to Office 365 Home Premium, which now has over 3.5M subs (up from 2M in October).
    • Microsoft's unearned revenue balance (non-GAAP) rose 12% Y/Y to $19.5B, and its contracted not billed balance rose 12% to over $23B.
    • MSFT +3.6% AH. FQ2 results, details, earnings slides (.ppt), guidance slides (.ppt)
    | 21 Comments
  • Jan. 23, 2014, 4:30 PM
    • Microsoft's (MSFT) Commercial Licensing revenue (Office, enterprise Windows, and Server & Tools licenses) rose 7% Y/Y in FQ2 (even with FQ1), and accounted for 44% of revenue and 62% of gross profit.
    • Commercial Other revenue, meanwhile, jumped 28% Y/Y for the second straight quarter, thanks to continued triple-digit growth for commercial cloud (Azure, enterprise Office 365) revenue. But the segment's gross margin (23%) is well below that of Commercial Licensing (93%).
    • Microsoft asserts it "significantly outpaced enterprise IT spend" by taking share.
    • Professional Windows OEM license revenue rose 12% Y/Y thanks to strong corporate Win. 7 upgrade activity. That, in turn, resulted in total Windows OEM revenue falling only 3% (vs. -7% in FQ1 and -15% in FQ4) in spite of ongoing consumer weakness.
    • Devices & Consumer Licensing (Windows OEM, consumer Office, Windows Phone, Android royalties) revenue fell 6% Y/Y. D&C hardware, boosted by the Xbox One launch, grew 68% Y/Y. Microsoft says it sold 3.9M Xbox One units into retail channels, and that Surface revenue rose over 2x Q/Q to $893M. D&C Other (Xbox Live, consumer Office 365, Windows Store) revenue fell 10%.
    • Opex rose 3% Y/Y, less than revenue growth of 14%. $2.1B was spent on buybacks.
    • MSFT +3.9% AH. CC at 5:30PM ET, guidance will be provided.
    • FQ2 results, PR
    | 2 Comments
  • Jan. 23, 2014, 4:05 PM
    • Microsoft Corporation (MSFT): Q2 EPS of $0.78 beats by $0.10.
    • Revenue of $24.52B (+14.3% Y/Y) beats by $850M.
    • Shares +3.1%.
    • Press Release
    | 12 Comments
  • Jan. 23, 2014, 7:55 AM
    • Q4 NSN sales -22% to €3.1B ($4.2B), dragged down by asset sales. Adjusted operating profit fell to €349M from €576M a year earlier.
    • Expects NSN operating margins of 1-9% in Q1 vs forecast of 7.6% by Nordea analyst Sami Sarkamies and 11.2% in Q4. FY profit margin will be "toward the higher end" of a 5-10% profit range.
    • Ends the quarter with €9B in gross cash.
    • Sales at the devices business, which is being sold to Microsoft (MSFT), are €2.63B ($3.56B), -29% on year and -4.5% on quarter. "Strong momentum of competing smartphone platforms" and a difficult transition to Lumia from Symbian phones contributed to falling smartphone sales.
    • Nokia (NOK) shares -2.3%. (PR)
    • Previous
    | 23 Comments
  • Jan. 23, 2014, 12:10 AM
  • Jan. 22, 2014, 5:35 PM
Visit Seeking Alpha's
MSFT vs. ETF Alternatives
Company Description
Microsoft Corp is engaged in designing, manufacturing, selling devices, and online advertising to a global customer audience. Its products include operating systems for computing devices, servers, phones, and other intelligent devices.
Sector: Technology
Country: United States