Microsoft outperforms on revenue, earnings in Q1

Microsoft reported Q1 2019 earnings per share of $1.14, up 36% compared to last year and outperforming analyst estimates of $0.96 per share. The strongest revenue growth came from Azure, LinkedIn, Dynamics 365, and gaming.

Revenue was $29.1 billion, up nineteen percent and beating $27.73 billion consensus estimate. Diluted earnings per share was $1.14, up 36% compared to consensus estimate of $0.96 per share.

Revenue in the Productivity and Business Processes sector was led by Dynamics 365 revenue growth of 51% and LinkedIn revenue growth of 33%. Dynamics product and cloud services revenue overall was up 20%. By comparison, in Q1 of FY2018, Dynamics and cloud revenue grew 13%.

The company also noted in earnings slides that operating expenses in the Productivity and Business Processes group increase 7% due to "investments in LinkedIn, cloud engineering, and commercial sales capacity," while operating income grew 29%.

Azure revenue grew 76% in the quarter, compared with 90% growth a year ago.

“We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation,” said Satya Nadella, chief executive officer of Microsoft in a statement. “We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.”

Source: Microsoft