Amidst the coronavirus outbreak, when every business all over the world is struggling to survive the complete lockdown is working under limited permissions, Microsoft grabs the opportunity and turn things in its favour.
Microsoft shares rose around 5% in extended trading on Wednesday after the company reported fiscal third-quarter sales growth of 15%. The growth is fueled by its cloud business. It beats estimated on the top and bottom lines.
In a statement issued by the giant it clearly said that COVID-19 had a minimal net impact on the total company revenue in the quarter and the effects also hopefully will not be reflected in the financial statements until future periods.
Analysts polled by Refinitiv had expected $1.26 in adjusted earnings per share on $33.66 billion in revenue for the first quarter of 2020. Its net income, unlike other mass businesses, rose 22% to $10.8 billion. Revenue augmented 15% from $30.57 billion on an annualised basis during the same period.
At a time when another business is badly struck by the shrinking economy to the extent that only option left for them is to throw out their employees, Mega cap Tech companies are holding up. After a steep drop in March, the ad prices are stabilizing.
Applications used in official working, like LinkedIn and office, recorded $11.74 billion in revenue, up 14.7% and higher than the FactSet analyst consensus of $11.53 billion. Personal computing segment, containing Bing, Windows, Surface and Xbox also shot up 2.9% with an $11 billion revenue.
The company expects $35.85 billion to $36.80 billion in fiscal fourth-quarter revenue. This indicates a growth estimate of 7.7%, its slowest since January to March Period of 2017. The Teams app now has a traffic of more than 75 million users, Cheif executive officer, Satya Nadella told in a report. Confidently, the shares of the firm are up 12%.