Interested? Contact Us
Microsoft profit misses estimates, shares fall
The logo of Microsoft company is seen in Paris, France, April 18, 2016.
Reuters/Jacky Naegelen - RTX2AMBT
Microsoft Corp's (MSFT.O) quarterly adjusted profit missed analysts' estimates as a continued slump in personal computer sales hurt the company's core Windows business, sending its shares down 4 percent in extended trading.
The company's net income fell to $3.76 billion, or 47 cents per share, in the third quarter ended March 31, from $4.99 billion, or 61 cents per share, a year earlier.
Revenue fell to $20.53 billion from $21.73 billion.
Adjusted revenue rose to $22.08 billion from $21.73 billion.
Excluding one-time items, Microsoft earned 62 cents per share. Analysts on average had expected a profit of 64 cents per share on revenue of $22.09 billion, according to Thomson Reuters I/B/E/S.
Revenue in Microsoft's "intelligent cloud" business, which includes the Azure cloud infrastructure and services business as well as products such as server software, rose 3.3 percent to $6.1 billion in the quarter.
Chief Executive Satya Nadella has focused on developing the company's cloud business with his "mobile first, cloud first" strategy, since taking over in early 2014.
Windows OEM revenue declined 2 percent in constant currency.
Worldwide PC shipments fell 11.5 percent in the first quarter, according to research firm IDC.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Savio D'Souza)
Stay Informed
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.
