Microsoft revenue,Analyst expectations - profit falls shorts

Microsoft Corp reported results that fell short of analysts' expectations, showing his business cloud high profile can not compensate for a PC market slowing.

Shares fell 5 percent in after hours trading to $ 52.92.

Two of the three major companies Microsoft showed lower operating income, led by what Microsoft calls its intelligent cloud division, which includes its business Azure cloud services and traditional server software. Despite revenue more than doubled Azure, revenue in the division grew only 3 percent.

"We would have liked to have seen 7 to 9 percent growth," Dan Morgan, portfolio manager at Synovus Trust to carry out the actions of Microsoft, said revenue intelligent cloud. "We are trying to validate this story that Microsoft is really becoming a cloud company, and we will not rely on the desktop."

Microsoft executives said that deficits in the business of intelligent cloud were due to pressure on the products that were tangential to the main thrust cloud, such as server software, which soothed some investors.

"Business in the Cloud Microsoft is gaining sales and market momentum, so I'm willing to give them the benefit of the doubt on external expectations losses this quarter," said Matt McIlwain, a venture capitalist Madrona Venture Group that oversees Microsoft closely. "However, the combined top line and bottom line miss raise the stakes for the last quarter of fiscal year 2016".

Revenues in the software giant based in Redmond, Washington, fell to $ 20.53 billion from $ 21.73 billion.

The net profit of the company in the third quarter ended March 31, down $ 3.76 billion, or 47 cents per share, from $ 4.99 billion, or 61 cents per share, a year earlier.

The company attributed, in part, higher than expected for the lower net income tax rate.

adjusted earnings of $ 22.08 billion was slightly below the expected $ 22.09 trillion analysts, according to Thomson Reuters I / B / E / S.

Excluding one-time items, Microsoft earned 62 cents per share. Analysts on average expected a profit of 64 cents per share.

Operating income in the process group productivity and business, which includes its Office software, fell 7 percent. Revenue rose 1 percent to $ 6.5 billion.

However, operating profit in the largest division of Microsoft, more personal computing, including its Windows operating system, the surface equipment and its Xbox gaming system, increased 57 percent over the year-ago quarter to $ 1.65 billion . Improved profit margins were driven by lower expenses in the business phone of Microsoft, which the company slashed last year, and sales of portable devices surface.

Revenues for the group rose 1 percent to $ 9.46 billion in the quarter. worldwide PC shipments fell 11.5 percent in the same period, according to research firm IDC.

Revenue in the business of intelligent cloud Microsoft, which includes business-and-services Azure cloud infrastructure as well as products such as software related to the server noncloud, rose 3.3 percent to $ 6.1 billion in the quarter.

Many investors determine the strength of the cloud Microsoft to see what it calls its commercial cloud, a separate measure that includes business in the cloud, such as Azure and Office 365. Commercial cloud software is on track to more than $ 10,000 million in revenue for the year starting in March, he said, above the figure of $ 9.4 million it gave last time.

CEO Satya Nadella has focused on business development cloud company with its "mobile first cloud first" strategy, since he took office in early 2014.