Microsoft announces 4Q results; revenue tops $60 billion

Microsoft announces fourth Quarter Results with cloud strength lifting the revenues.

  • Revenue was $46.2 billion and increased 21%
  • Operating income was $19.1 billion and increased 42%
  • Net income was $16.5 billion and increased 47%
  • Diluted earnings per share was $2.17 and increased 49%

Link to the full press statement

Microsoft, now a $1 Trillion company, announces it quarterly reports on Tuesday, after the bell. The expectations for the company are high as the stocks soar. 

The pandemic and the lockdown made companies look out for alternative options to make work-from-home feasible for employees, as many employees preferred for the remote work options than in-office jobs. To meet the employees’ requests, and to ensure easy work options, businesses were keen on investing in cloud capabilities. 

Thus, Microsoft’s cloud business was able to provide feasible cloud solutions and also impressively performed in the stock market in the recent years. The bullish sentiments is responsible for the company (MSFT) shares’ surge, closing on Friday to $289.58, up by 31% for the year till date. The market cap is up to $2.8 trillion.  

In the past four quarters, Microsoft has beat the analysts expectations for its earnings. Citi analyst Tyler Radke had set up a price target of $378 for it, and the company’s share price recently reached an all-time high of $284.55.  

In Q4 2020, Microsoft earned $44.2 billion versus expected $38 billion, and $1.92 earning per share versus $1.46 earning per share expected.  

During its Q4 earnings report, Microsoft will also unveil Windows 11, the next generation operating system. The company had said in June that it would stop supporting Windows 10 in 2025. 

Dan Ives, Wedbush analyst, wrote in a note ahead of the company’s earnings that they expect another ‘beat and raise’ special from Redmond with Azure growth numbers (45%+ YoY). 

Undoubtedly, Microsoft’s cloud performance is to be the talk of the earnings announcement. But investors are also keen on comments from the company’s CEO, Satya Nadella on the JEDI project.  

Recently, Department of Defense pulled it’s 10 year, $10 billion Joint Enterprise Defensive Initiative contract from the company. The project JEDI was designed to Pentagon’s communications and technology for the 21st century. But was covered in controversy.   

Microsoft is currently priced at $289.05, dipping by 0.62 (-0.21%). 

Analysts have been optimistic for the quarter and have been observing the Microsoft partners and resellers closely for the clues. 

The report below shows the analysts’ expectations of the technology company. 

Earning: $1.90 per share, anticipated 

Revenue: $44.1 billion anticipated 

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