Microsoft Corporation (NASDAQ:MSFT) reported quarterly results that top analysts’ expectations, as the company’s cloud revenue more than double in the fiscal first quarter.
The stock jumped as mush as 6 percent to a record $60.74 in premarket trading Friday, hitting record high above its 1999 all-time high of $59.97.
Net income was $4.69 billion, or 69 cents a share, in the first quarter, compared with a $4.9 billion profit, or 61 cents a share, a year ago. Excluding certain items, adjusted earnings were 76 cents. Revenue rose 0.4 percent to $20.45 billion. Adjusted sales was $22.33 billion in the quarter.
Analysts from The Wall Street expected the company to report earnings of 68 cents on revenue of $21.7 billion.
The better-than-expected sales were boosted by strong cloud business. Revenue from Azure grew 116%, or 121% in constant currency, the company said. The revenue from the entire intelligent cloud segment was $6.38 billion, topping analysts’ estimate of about $6.27 billion.
“Cloud is growing significantly and Azure represents incremental new revenue,” said Mark Moerdler, an analyst at Sanford C. Bernstein & Co., who rates the shares outperform. “Commercial cloud is driving revenue growth, which is somewhat hidden by the fact that Nokia is going to zero.”
“This transition to the cloud represents the single largest addressable market opportunity we’ve all seen in many, many years,” Chief Financial Officer Amy Hood said after the report. “There is such an opportunity to grow our overall revenue and do it profitably.”