Software giant Microsoft Corp. (MSFT) Tuesday reported fourth-quarter results, with both earnings and revenues missing Wall Street estimates, as cloud business growth slows down.
Net income for the fourth quarter was $16.74 billion or $2.23 per share, up from $16.46 billion or $2.17 per share in the same quarter last year. Twenty-nine analysts polled by Thomson Reuters expected earnings of $2.30 per share for the quarter.
Microsoft said its revenues grew 12% to $51.87 billion from $46.15 billion last year. Analysts had a consensus revenue estimate of $52.47 billion.
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” said CFO Amy Hood.
The revenue from intelligent cloud services increased to $20.9 billion in the quarter, up 20% from last year, driven by Azure and other cloud services revenue growth of 40%. However, Azure and other cloud services revenues has slowed down compared to previous quarter’s 46% growth.
Revenue in Productivity and Business Processes increased 13% to $16.6 billion, with office commercial products and cloud services revenue up 9 percent driven by Office 365 commercial revenue growth of 15 percent.
Revenues in More Personal Computing segment, which includes Windows operating system, increased 2 percent to $14.4 billion.
MSFT closed Tuesday’s trading at $251.90, down $6.93 or 2.68%, on the Nasdaq. The stock further slipped $3.13 or 1.24% in the after-hours trading.
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