Microsoft yesterday unveiled a solid financial report for Q1 2022, which beat Wall Street's estimates. Of course, some of the forecasts for the largest US tech companies are lowered, however the report can be considered as successful, taking into account the lack of alarming signals regarding the slowdown in growth dynamics.At the same time, it is hard to consider the latest quarterly results as something spectacular. Microsoft's shares are already listed almost 7% higher:
- Revenue: $ 49.36 billion, Expectations: $ 49.05 billion
- Earnings per share: $ 2.22 Expectationions: $ 2.19
- The company's revenues rose 18% y / y compared to the 20% increase in the previous quarter. However, the company recorded the smallest revenue growth since 2018, beating forecasts by just 1%.
- Revenue from Microsoft Cloud (Azure, SQL, Windows Server), which competes with Amazon and Google, increased by 46%, similar to the previous quarter. StreetAccount analysts expected a reading of 43.6%. The cloud segment generated $ 19.05 billion profit, beating market estimates of $ 18.9 billion;
- Business processes segment increased by almost 17% and brought almost USD 15.8 billion revenue (Office 365, Linkedin, Dynamics)
- Windows license sales increased by almost 11%, however computer sales fell by almost 7% and approached 2020 levels;
- Marketing and sales expenses increased to $ 5.6 billion (10% up from the previous quarter). Perhaps these expenses turned out to be crucial and helped the company keep growing;
- Microsoft also plans to purchase game developer Activision Blizzard for a record $ 70 billion. At the same time, company has announced the finalization of the Nuance Communications acquisition and expansion in the health sector;
- Company issued an upbeat revenue guidance for the current quarter that also turned out to be higher than expected. Microsoft expects calendar Q2 2022 revenue at $52.4-53.2 billion, which represents nearly 10% increase compared to the current level.
Microsoft (MSFT.US), interval H4. The share price is moving in a downward trend since the fall of 2021, but the declines were again halted around key support at $270. Currently buyers are trying to erase recent losses and price is heading towards the first major resistance around $290, which coincides with 23.6 Fibonacci retracement of the last downward wave. Should break higher occur, upward move may accelerate towards the psychological resistance at $ 300. Source: xStation5
