Microsoft reports lower revenue in latest earnings report, lower net income
One wonders what would have happened to Apple’s stock had it reported lower revenue yesterday. Instead, revenue again rose, but poor iPad sales damped enthusiasm.
Today, Microsoft reported its fiscal Q3 earnings and said that it had lower revenue and net income in the quarter, with revenue coming in at $20.403 billion, a very small decrease compared to the prior year’s revenue of $20.489 billion.
Microsoft stock is up in after hours trading, as investors, it seems, have lowered their expectations for the Redmond, Washington company, or else are giving its new CEO Satya Nadella a honeymoon period.
“This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,” said Nadella in the company’s earnings statement. “We are focused on executing rapidly and delivering bold, innovative products that people love to use.”
Microsoft said it expects to close the acquisition of the Nokia business tomorrow.
Despite the lower income in Q3, the company is still ahead of last year’s performance, with income through nine months of its fiscal 2014 year at $17.462 billion, compared to $16.898 in the previous year.