Investing.com - Microsoft reported on Wednesday second quarter earnings that beat analysts' forecasts and revenue that topped expectations.
Microsoft (NASDAQ:MSFT) announced earnings per share of .51 on revenue of .91 billion. Analysts polled by Investing.com anticipated EPS of .32 on revenue of .67 billion.
That compares to EPS of .10 on revenue of .47 billion in the same period a year before. Microsoft had reported EPS of .38 on revenue of .06 billion in the previous quarter. Analysts are expecting EPS of .24 and revenue of .12 billion in the upcoming quarter.
“The factors that supported Microsoft shares in recent years are still very much in play,” Investing.com analyst Haris Anwar said. “The cloud computing market is expected to grow from 5 billion in 2017 to 1 billion by 2020. That segment alone is big enough to drive the company’s revenue growth for the next three to four years.”
“Microsoft’s earnings momentum will continue as it expands its market share in the cloud computing segment while maintaining its leading position in legacy software products such as Windows and Office,” Anwar said.
Sustained, double-digit growth in revenue, earnings per share and free cash flow is likely, he added.
Microsoft (NASDAQ:MSFT) shares are up 6% from the beginning of the year and are trading at 1.68 , still down 0.36% from its 52-week high of 8.74 set on Jan. 29. They are outperforming the Dow 30 which is up 0.33% year to date.
Microsoft shares gained 2.11% in after-hours trade following the report.
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