Microsoft: Q1 earnings

Summary of Microsoft's earnings for its first quarter, following which shares were up 3% immediately after results in post-market trading (9.06pm London time).

 

Revenue

Earnings per share

Expected

$22.00 billion $0.55

Actual

$23.2 billion $0.65

 

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A beat on expectations for Microsoft was enthusiastically received, with the share price rallying 4%. Hardware revenue growth was particularly encouraging, up a massive 74% for the period to $2.45 billion.

Particularly striking is that the firm is doing better than rivals like SAP and IBM with regards to the shift to cloud computing. Combined with an increase in gross margins, it looks like Microsoft still has a lot going for it. At 18 times earnings the stock looks reasonably priced, trading at a prudent multiple that doesn’t overstate expected growth.

Although the stock is off its all-time highs upward momentum is still with it. The drift back to the 50-DMA was to be expected and will likely tempt in a few buyers, and any rally back to the $48 level will be a sign of continuing bullishness. 

Here is a  full list of US stocks that can be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm (London time).

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