Microsoft Q1 Earnings Live Blog | Arena


Eric Jhonsa of Real Money blogs live about Microsoft’s earnings report and a conference call with management.

Microsoft bulls hope the software giant calms concerns about weakening business IT spending when it shares earnings and guidance on Tuesday afternoon.

Among analysts polled by FactSet, the consensus is that Microsoft is reporting revenue of $49.66 billion (up 10% yoy) for the September quarter (first fiscal quarter) and EPS of 2. $31.

Microsoft typically shares its quarterly sales guidance for its three reporting segments — Productivity and Business Processes, Intelligent Cloud, and More Personal Computing — during its earnings call. The company’s revenue consensus for the December quarter is $56.16 billion (up 9%).

Eric Jhonsa, Real Money’s technology columnist, will deliver Microsoft’s earnings report, which is expected after the bell, live, as well as its earnings call, which is scheduled for 5:30 p.m. EST.

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4:07 p.m. ET: Some key revenue growth rates:

Commercial offices +7%

Desktop consumer +7%

LinkedIn +17%

Dynamic +15%

Windows-OEM -15%

Commercial Windows +8%

Xbox content/services -3%

Search/News Network Ads +16%

Devices +2%

4:05 p.m. ET: Revenue from Azure and other cloud services grew 35% YoY (42% CC), slightly below consensus of 36.5%.

4:03 p.m. ET: Shares are down 2% after hours at $245.62.

4:02 p.m. ET: The results are out. First-quarter revenue of $50.12 billion beat consensus of $49.66 billion. EPS of $2.35 beat consensus of $2.31.

4:00 p.m. ET: Microsoft closed 1.4% higher at $250.66. The earnings should be known shortly.

3:58 p.m. ET: Microsoft’s Azure revenue growth figure will once again command attention. Azure revenue grew 40% year-over-year in Q4 (46% in constant currency), and Q2 consensus is 36.5%.

3:54 p.m. ET: Microsoft shares are posting earnings down 25% year-to-date, amid a 28% decline for the Nasdaq. But shares are up 14% from a 52-week low of $219.13 (set two weeks ago).

3:51 p.m. ET: The FactSet consensus is that Microsoft has FQ1 revenue of $49.66 billion and EPS of $2.31. And the FQ2 revenue consensus (Microsoft shared sales guidance on its call) is $56.16 billion.

The forecast could ultimately have a big impact on how Microsoft trades tomorrow — both because December is an important seasonal quarter and because many investors have been aware of demand trends and forex headwinds.

3:47 p.m. ET: Hi, this is Eric Jhonsa. I’ll be live blogging Microsoft’s earnings report and calling.

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