HomeMicrosoft's Q4 cloud business slowdown last year was still better than expected, and its stock price rose more than 4% after hours (Reuters data photo)
[Financial Channel/Comprehensive Report] Although Microsoft’s demand for personal computers and enterprise software declined in the fourth quarter of last year, the cloud business Azure performed well, supporting the company’s earnings per share better than market expectations, which encouraged the stock price to rise by 4.59 after hours on Tuesday. %, however, after Microsoft announced that the growth rate of its Azure cloud computing business has slowed down this quarter, investor confidence has been frustrated, and the stock price has turned from red to black, closing at $239.6, a drop of 1.01%.
According to foreign media reports, Microsoft announced its fourth-quarter financial report last year after the U.S. stock market on Thursday. The fourth-quarter operating income was US$52.7 billion, an annual increase of 2%, which was lower than analysts’ expectations of US$52.93 billion. However, if the impact of exchange rate fluctuations is excluded, according to Calculated at constant exchange rates, the annual growth rate of revenue was 7%, which was higher than the market's expected growth rate of 6.59%.
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On a non-GAAP basis for the fourth quarter, adjusted diluted EPS was $2.32, beating analyst expectations of $2.30.
The adjusted operating profit in the fourth quarter was US$21.6 billion, an annual decrease of 3%; the adjusted net profit was US$17.4 billion, an annual decrease of 7%.
After the financial report was announced, Microsoft's stock price, which closed down more than 0.2%, jumped after hours, once close to 5%.
However, in the performance conference call, Microsoft pointed out that on the basis of the growth rate of more than 30% in the fourth quarter of last year, the growth rate of the Azure cloud computing business in the first quarter of this year will slow down by another 4 or 5 percentage points. In the first half of the year, commercial sales growth will slow down.
Affected by this news, Microsoft's stock price turned from red to black, and closed at $239.6 after hours, a decrease of 1.01%.
As for the revenue performance of each department in the fourth quarter, the revenue of the smart cloud business department was 21.5 billion US dollars, an increase of 18% year-on-year, which was better than analysts' expectations of 21.43 billion US dollars.
The productivity and business process business segment revenue was $17 billion, an annual increase of 7%, better than the expected $16.81 billion; the personal computing business segment revenue was $14.2 billion, an annual decrease of 19%. ) revenue decreased by 39% year-on-year.
In terms of business, Microsoft's two core businesses, Azure as the core and Office as the core business, have higher than market expectations in the fourth quarter. Only Windows and Surface personal computer (PC) related business revenue is lower than It is expected that the decline in the PC business will reach double digits.
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