Microsoft (MSFT) Stock: Gains on Strong Earnings

Microsoft Corporation (NASDAQ: MSFT)

Microsoft is having an incredible day in the market today, and for good reason. The company reported its earnings for the first fiscal quarter, beating expectations in all stretches of the imagination. Today, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we can expect to see from MSFT moving forward.

MSFT Reports Strong Earnings

As mentioned above, Microsoft is having a strong day in the market today after reporting earnings for the first fiscal quarter. As you could imagine, earnings proved to be overwhelmingly positive. Here’s what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, MSFT definitely did not disappoint. During the quarter, analysts expected the company to generate earnings in the amount of $0.68 per share. However, the company actually reported that in the first quarter, earnings came to a total of $0.76 per share.
  • Revenue – When it comes to revenue, MSFT reported a relatively mixed bag of data. During the quarter, analysts expected that the company would generate revenue in the amount of $21.7 billion. While the company missed those expectations, it did show year over year growth. In the first quarter, the company reported revenue in the amount of $20.5 billion, beating last year’s total for the same quarter of $20.4 billion.
  • Intelligence Cloud – In the report, the company’s Intelligence Cloud took the center stage. In the quarter the segment generated $6.38 billion in revenue for Microsoft, and the company is expecting for it to generate between $6.55 billion and $6.75 billion in the quarter ahead.

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with the company as a result. On the other hand, negative news will generally lead to declines. In this particular case, the news proved to be overwhelmingly positive. After all, beating earnings expectations is just what investors like to see. As a result, we’re seeing strong gains. Currently (12:02), MSFT is trading at $59.94 per share after a gain of $2.69 per share or 4.71% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Microsoft. At the end of the day, everyone knows the name. The company has done an incredible job building its brand and innovating in-demand products that the masses love. At the end of the day, the innovation is continuing, and that’s largely what led to such a strong earnings report. Looking at MSFT, I couldn’t imagine a situation where the company would slow innovation and start turning in the other direction. All in all, I’m expecting to see gains ahead.

What Do You Think?

Where do you think MSFT is headed moving forward? Join the discussion in the comments below!