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Microsoft’s slight earnings beat is not enough to lure us off the sidelines



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Microsoft (MSFT) delivered better second-quarter results than many on Wall Street anticipated, initially sending shares soaring in afterhours trading. But the stock retreated after management announced softer-than-expected guidance for the technology giant’s third quarter — underscoring our decision to remain sidelined buyers for now. Revenue for the three months ended Dec. 31 came in at $52.75 billion, slightly missing analysts’ forecasts of $52.94 billion, according to estimates from Refinitiv, even as revenue growth from the cloud computing unit, Azure, slightly outperformed expectations. Adjusted earnings-per-share of $2.32 a share beat analysts’ estimates by 3 cents. Bottom line Microsoft was able to pull off a quarter that was not as poor as feared, boosting shares 3% to 4% after the market closed. It was a welcomed, if brief, relief …

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