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Microsoft Posts Upbeat Q3 Results on Cloud Strength, Provides Strong Guidance

Microsoft Corp. (NASDAQ: MSFT) reported upbeat fiscal third-quarter 2022 results, topping analysts’ expectations. Strong customer commitments to the company’s cloud platform and outstanding performance of all segments acted as tailwinds. Additionally, the company provided strong guidance for the June quarter.

Following the news, shares of the tech giant jumped 4.47% in Tuesday’s extended trading session after closing 3.74% lower on the day.

Results in Detail
Microsoft reported adjusted earnings of $2.22 per share, up 14% year-over-year, and handily beat the Street’s estimates of $2.18 per share.

Additionally, revenue surged 18% to $49.4 billion and beat analysts’ expectations of $49.03 billion.

Results included the impact of unfavorable foreign exchange rate movement and the acquisition of Nuance, which closed on March 4, 2022.

Operating expenses came in at $13.4 billion, up 155 year-over-year.

Segmental Revenues
Microsoft reported Productivity and Business Processes quarterly revenue of $15.8 billion, up 17% year-over-year. Within the segment, commercial products and cloud services revenue jumped 12%, consumer products and cloud services revenue rose 11%, and LinkedIn revenue surged 34%. Notably, Microsoft 365 Consumer subscribers grew to 58.4 million in the quarter.

Intelligent Cloud revenue stood at $19.1 billion, up 26%. Remarkably, Azure and other cloud services revenue growth was 46%. Microsoft Cloud revenue was up 32%, while commercial bookings reflected a growth of 28%.

More Personal Computing increased 11% to $14.5 billion, including a rise of 11% in Windows OEM revenue. A robust PC market, mainly in the commercial segment, drove the results.

Capital Deployment
During the third quarter, Microsoft returned $12.4 billion to shareholders, including $7.8 in the form of share repurchases and $4.6 billion in dividends.

CEO’s Comments
Sharing his thoughts, Microsoft CEO Satya Nadella commented, “Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”

Guidance
For the Fiscal fourth quarter of 2022, the company has provided a strong segmental revenue outlook but expects the impact of foreign currency to decrease total revenue growth by around 2 points.

Productivity and Business Processes unit is expected to report revenue in the range of $16.65-$16.9 billion, while Intelligent Cloud revenue is likely to land between $21.1 billion and $21.35 billion.

Additionally, More Personal Computing unit revenue is anticipated to come in between $14.65 billion and $14.95 billion.

Operating expenses are expected in the range of $14.8 billion to $14.9 billion.

Management anticipates the Russia-Ukraine conflict to continue to impact the business in Q4, with about $110 million impacts on revenue and minimum impact on operating expenses.

Wall Street’s Take
Shares have rallied 4% over the past year, while Wall Street analysts are still bullish about the stock. The Strong Buy consensus rating boasts 18 unanimous Buys. Looking ahead, the average Microsoft price target stands at $371.13, putting the upside potential at 37.34% from current levels.

Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), offered insight into Microsoft’s performance in the March quarter.

Supporting the upbeat March quarter results, the website traffic tool showed an uptrend in the website traffic. According to the tool, microsoft.com recorded a 20.2% year-over-year increase in global estimated visits in Fiscal Q3 2022.

The predictions that were based on TipRanks’ website visits data turned out to be correct, with Microsoft reporting strong revenues in the quarter.

12 Iron Rules for Exiting Trading!

Although the length is short, the gold content is very large, and it is recommended to save it for collection.

In stock trading, you must first learn to avoid risks and put yourself in a favorable position, which will determine whether you succeed or fail. To grasp the relationship between the principal, period, position and price, and to achieve the conditions for taking profit and exiting, we must resolutely give up. No one can leave the field at the top every time, just eat the fish and eat the fat part in the middle. Today, I will share the exiting skills I have practiced for many years with the cow friends!

1. The stock price has released a large amount, and the short-term increase is more than 60%. At this time, the main force comes to the profit space, and it is likely to ship in heavy volume, leaving the market first.

2. When the stock is in an upward trend, it suddenly closes a long upper shadow at a high level, indicating that the bulls are weak and the bears have the advantage, which is a sign of peaking.

3. After the stock has risen for a period of time, it has fluctuated sideways at a high level, and the volume is heavy. You can wait and see first. It is relatively safe to shrink the volume.

4. The stock price has not changed much, but the trading volume has released a huge amount, which is a typical symptom of stagnation. If there is a divergence of volume and price, the market outlook is likely to see a correction, and you can choose to take profit and leave the market.

5. When observing the flow of stock price and amount, it is found that the main force continues to have a large net outflow. Pay special attention to the main force fleeing, and there may be changes in the future.

6. The stock suddenly crosses the important support average with heavy volume. You should take profit and stay on the sidelines. If the subsequent rebound does not stand firm on the moving average, you don’t need to pay attention, indicating that the shape has reversed.

7. The stock suddenly rose rapidly during the session. After the market closed, there was good news in the market, indicating that the main force digested the positive events in advance. At this time, you should pay attention to the position of the increase. It is relatively safe at a low level, and it appears at a high level. Be careful to take advantage of the main force to ship the next day.

8. When the leading stocks of the sector held by you have a signal of high stagnation, generally at this time, the high level of the sector is about to peak. Considering the linkage effect within the sector, choose an opportunity to take profit and leave the market.

9. When a certain sector rises collectively, but individual stocks do not rise, but instead trade sideways or pull back, don’t think about picking up bargains and bottom-hunting, and observe whether there are any problems with its fundamentals and whether the company’s performance has changed.

10. When the overall trend of a certain sector is not good, the industry cycle is in a downturn range, and the performance of finishing is declining. At this time, don’t think about how much profit you can make from it.

11. When the stock held by the company announces the financial report, the company's performance declines sharply, or even suffers a serious loss, which is far lower than the previous expectation, and it is necessary to leave the market decisively. When the fundamentals change, it is difficult to have a qualitative change in the short term.

12. When the water is full, it overflows, and when the moon is full, it loses. When the stock price keeps hitting new record highs and the market is full of fiery noises, instead, calm down, pay attention to the extremes of things, pay attention to the signal of peaking at a high level, and you can choose to gradually reduce positions and take profits.

The above is my operating experience and key points of leaving the field, and everyone can seriously comprehend it. In stocks, no one can eat all of them again and again. Control greed to avoid profit-taking and be safe. Under the premise of controlling risks, small profits will create big profits again and again, so don't worry about gains and losses when leaving the game. A good attitude is the premise of winning.

If it feels helpful to you, you might as well stay and make a friend. Thank you for your likes and attention, and I wish everyone a long profit in the stock!