LONDON, February 10, 2015 /PRNewswire/ --
Editor Note: For more information about this release, please scroll to bottom.
Investor-Edge.com has issued free post-earnings research on Microsoft Corp. (NASDAQ: MSFT). On January 26, 2015, the company reported its Q2 FY15 results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT to read our free earnings review on Microsoft Corporation (Microsoft). During Q2 FY15, the company's GAAP revenue increased 8% Y-o-Y and GAAP gross margin improved 1% Y-o-Y. Executive Vice president and Chief Financial Officer at Microsoft, Amy Hood, stated that the company remained disciplined in its approach to operational and execution excellence, balanced with investments that drive meaningful growth for the business while increasing capital return to shareholders. Our free coverage report can be accessed at:
http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT
Earnings Overview
During Q2 FY15, Microsoft reported GAAP revenue of $26.47 billion compared to $24.52 billion in Q2 FY14. The company's GAAP revenue in Q2 FY15 outperformed Bloomberg analysts' expectations of $26.30 billion. Microsoft's GAAP gross margin was $16.33 billion for Q2 FY15 compared with $16.20 billion in Q2 FY14. However, the company's GAAP operating income for Q2 FY15 declined to $7.78 billion from $7.97 billion in Q2 FY14. Free research on MSFT can be downloaded in PDF format at:
http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT
In Q2 FY15, Microsoft's Devices and Consumer segment revenue grew 8% Y-o-Y to $12.9 billion, with a 24% Y-o-Y growth in Surface revenue driven by Surface Pro 3 and accessories. During the reported quarter, the company's Office 365 home and personal subscribers increased to over 9.2 million, while search advertising revenue grew 23% Y-o-Y. Additionally, the company sold 6.6 million units of Xbox consoles and 10.5 million units of Lumia units in Q2 FY15. However, in Q2 FY15, Windows OEM Pro and Windows OEM non-Pro revenue declined 13% Y-o-Y, each. Furthermore, Microsoft's Commercial segment revenue grew 5% Y-o-Y to $13.3 billion in Q2 FY15. In the reported quarter, Commercial cloud and Server products and services saw revenue growth of 114% Y-o-Y and 9% Y-o-Y, respectively. Windows volume licensing revenue also improved 3% Y-o-Y while revenues from Office Commercial products and services declined 1% Y-o-Y in Q2 FY15.
CEO of Microsoft, Satya Nadella, said that the company is continuing to transform, executing against its strategic priorities and extending its cloud leadership. He also informed that the management is taking bold steps forward across business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to the customers. Sign up and read the free analyst's notes on MSFT at:
http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT
For Q2 FY15, Microsoft's net income came at $5.86 billion compared to $6.56 billion in Q2 FY14. Additionally, the company's GAAP diluted EPS for Q2 FY15 was $0.71, compared with $0.78 in Q2 FY14. Bloomberg analysts' had expected net income of $5.88 billion and GAAP diluted EPS of $0.71 in Q2 FY15. Microsoft's Q2 FY15 financial results included integration and restructuring expenses of $243 million, or a $0.02 per share negative impact, related to both Microsoft's restructuring plan announced in July 2014 and the ongoing integration of the Nokia Devices and Services business. It also included a $0.04 per share negative impact related to income tax expense resulting from an IRS audit adjustment.
During Q2 FY15, Microsoft also announced its intention to complete the existing $40 billion share repurchase authorization by December 31, 2016. Visit Investor-Edge and access the latest research on MSFT at:
http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT
Stock Performance
On the day following the earnings release, January 27, 2015, Microsoft's stock plummeted 9.25% ending the session at $42.66. Since then, the stock has witnessed a mixed momentum. On the last close, Monday, February 09, 2015, the company's shares finished 0.12% lower at $42.36. The company's shares vacillated between $42.21 and $42.74 during the session. A total of 27.42 million shares were traded which was below its three months average volume of 35.19 million shares. Over the last one month and previous three months, Microsoft's shares have lost 10.24% and 12.98%, respectively. However, the stock has gained 15.86% over the past one year. Shares in the company closed below their 50-day and 200-day moving averages of $46.15 and $44.44, respectively. Furthermore, the stock traded at a PE ratio of 15.88.
Sneak Peek to Corporate Insider Trading
In the last one month, there were 16 corporate insider transactions made by eight individuals. A total of 1.06 million shares of the company were bought at an average price of $41.18 per share for a total value of $43.48 million between January 28, 2015 and February 04, 2015. During the same time period, 6.01 million shares in total were also disposed at an average price of $41.33 per share for a total value of $248.21 million. The following are few of the transactions made in the aforesaid period: William H. Gates III, Founder, Technology Advisor, and Director at Microsoft, disposed 6.00 million shares at an average price of $41.32 per share. ValueAct Holdings GP LLC, a 10% stakeholder in Microsoft, bought 500,000 shares at a price of $41.11. Moreover, ValueAct Capital Management LLC, a 10% stakeholder in Microsoft, purchased 257,258 shares at price of $41.05 per share. Complimentary in-depth research on MSFT is available at:
http://get.Investor-Edge.com/pdf/?c=Microsoft&d=10-Feb-2015&s=MSFT
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