How Microsoft Did It Again in Q1

Chris Lange

Microsoft Corp. (NASDAQ: MSFT) reported fiscal first-quarter results after markets closed Wednesday. The software behemoth reported diluted earnings per share (EPS) of $1.14 on revenues of $29.1 billion. In the same period last year the company reported EPS of $0.84 on revenues of $27.9 billion. The consensus estimates called for EPS of $0.96 on revenues of $24.54 billion.

Microsoft returned $6.1 billion to shareholders in the form of dividends and share repurchases in the quarter, an increase of 27% compared to the first quarter of fiscal year 2018.

In terms of its segments, Microsoft reported:

  • Productivity and Business Processes revenues increased 19% to $9.8 billion (up 18% in constant currency).
  • Intelligent Cloud revenues increased 24% to $8.6 billion (up 24% in constant currency).
  • More Personal Computing revenues increased 15% to $10.7 billion (up 15% in constant currency).

The company plans to issue guidance in the conference call. Consensus estimates are calling for $1.08 in EPS and $32.25 billion in revenue for the fiscal second quarter.

Satya Nadella, CEO of Microsoft, commented:

We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation. We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.

Shares of Microsoft closed Wednesday at $102.32, with a consensus analyst price target of $124.53 and a 52-week range of $78.01 to $116.18. Following the announcement, the stock was up over 3% at $105.87 in the after-hours session.