Microsoft (MSFT), reported earnings after the bell today, posting an EPS of $0.62, and revenue of $18.5 billion. This crushed the Zacks estimates of $0.54, and $17.8 billion respectfully. After last quarters $0.15 EPS miss, this beat comes as a welcomed surprise to analysts.
Over the past 60 days, analysts have been negatively revising their estimates, dropping from an average EPS of $0.57 to $0.54, and decreasing their estimates through 2015 (dropping from $3.06 to $3.00 for 2015). With this earnings beat, we should see several estimate revisions over the next few days.
In early reports, the two new reported segments; Devices & Consumer, and Commercial, both beat revenue expectations by posting $7.3 Billion, and $11.2 billion respectfully. This is stunning news to the street, due to the significant headwinds facing the company throughout the quarter; CEO search, global PC sales, Windows 8.1, Cloud growth, and the Nokia purchase.
We are still awaiting results on specific segments, namely the cloud enterprise, and global PC sales, but with these strong beats, it would appear as though both the major concerns have been neutralized at least.
In afterhours trading, MSFT has jumped over 5% on heavy volume. This suggests people are covering a lot of shorts, and have turned bullish on the stock.
Tomorrow morning, Zacks will have a detailed report covering all earnings news by MSFT.
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