Microsoft Q4 earnings dinged by $7 billion acquisition of Nokia Devices and Services

Microsoft meets Wall Streets estimates with its Q4 earnings

Microsoft meets Wall Streets estimates with its Q4 earnings


Microsoft reported its fourth quarter earnings after the U.S. stock markets closed Monday evening. The company reported an 8.1% rise in revenue to $26.5 billion from $24.5 billion last year. Earnings declined to $5.86 billion or 71 cents a share, down 9% from $6.56 billion or 78 cents a share the prior year. Wall Street had it right on as analysts were looking for net to come in at 71 cents a share. Earnings were negatively affected by the $7 billion acquisition of Nokia Devices and Services.

The company was hurt by the stronger dollar, which means that foreign currency received from foreign sales of Lumia phones and Surface tablets brought in fewer dollars when converted to the U.S. currency. Surface tablets brought in $1 billion in the quarter as the Microsoft Surface Pro 3 remained red hot. During the quarter, Microsoft launched two low-end smartphone models for emerging markets. Overall, Microsoft's revenues from Lumia handsets amounted to $2 billion in the quarter.

After hours, Microsoft's shares declined 3.9% to $45.18. Tomorrow, Apple and Yahoo will report their latest quarterly earnings and Amazon's report will take center stage on Thursday.

source: WSJ, USAToday

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25 Comments

1. corporateJP

Posts: 2458; Member since: Nov 28, 2009

That 7 Billion is not money well spent on their part. Their phones won't sell like they did when they used to say "Nokia" on them. On top of that, Nokia WILL be coming back with Androids in the next 12-24 months. Serves them right.

2. Johnnokia

Posts: 1158; Member since: May 27, 2012

Almost 11 months left. I am counting !

3. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Dude why are you such a troll. Microsoft sold a record 10.5 million Lumias with revenues of 2.3 billion and after expenses $331 million profit.

4. Johnnokia

Posts: 1158; Member since: May 27, 2012

They experienced a loss of $232 million on phone hardware. You must carefully read the financial earning report

6. Liveitup

Posts: 1798; Member since: Jan 07, 2014

17. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Up 2 million units, YOY, but down 61% in revenue. If you think that is positive, you don't understand finance. That means they are practically giving them away for the quarter, which also means they are low-end phones that won't have a significant impact on services or Marketplace sales.

5. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

They lost too much last year in phone sales and WP8 marketshare. That 10mil number is pathetic. Even dying HTC is selling more.

7. MuddyCow

Posts: 90; Member since: Oct 09, 2014

Yeah sure, and Palm sold 30mill this period.

8. Liveitup

Posts: 1798; Member since: Jan 07, 2014

HTC had a solid last quarter I wouldn't necessarily call them dying. I did not see hard numbers from HTC saying how many units they sold, also lets not forget that for the first time in quite a while HTC also made M8 for Windows which MS also promoted. So all HTC sales were not from Android. Even if HTC had sold more 10.5 million Lumias is nothing to laugh at.

14. AfterShock

Posts: 4146; Member since: Nov 02, 2012

The mushroom cloud is still forming from the fragmentation nuke not all phones are getting wp10 an you still can find sunshine in a damp crack! +10

16. Enddo

Posts: 53; Member since: May 26, 2014

I'm pretty sure HTC only sold ~5 million HTC One M8s

9. akki20892

Posts: 3902; Member since: Feb 04, 2013

I'm waiting........Nokia with Android and i wanna see Nokia rise again....!!!

11. brrunopt

Posts: 742; Member since: Aug 15, 2013

I serously dont gget these type of comments .. Whats makes a phones e the people behind it, not the name on the front ; ans those people are at microsoft now..

15. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Chalk it up to utter ignorance mixed with hatred. Thats the way they are.

19. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Only 1/8 of those people are left now, and that number will continue to drop...

10. Settings

Posts: 2943; Member since: Jul 02, 2014

You know that Microsoft royalties are their cash cows not just the mobile department.

20. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Well, the mobile department isn't a cash cow, so they best count on those PC sync royalties...

24. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Just as stupid as ever. Microsoft makes paper on every Android because of patents, which is why Samsung is being sued. No MS, no Android. Chew on that for a while.

26. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Go chew on your banana, pirate...

12. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Wow, and Chase bank dropped app support today too I heard. Not too rosey at moment. They need a stellar flagship NOW! When they rolled out 95 with stones Start me up, it also coincided with new Pentium which together was success, new GUI helped there for sure, here the current GUI, you know how I feel about that. Cmon MS, open the money vault build a phone wp fans can gloat about.

21. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Not rosey cause one app drops, and they sold more lumias than ever? Yup...dooooooooooooooooooom

22. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Sold more then ever? Where? Stop with these pos bottom feeders, no one wants them, they take them as their is little choice when you're poor!! MS needs a flagship now!

25. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

You're both right and both wrong. Yes, more Lumias were sold and yes, they were mostly budget devices. But with that growth on the low end came more apps. The Store is close to 500k already and in very short order. The lack of a "flagship" is a perceived problem from WP8 users. To them, the world begins and ends with Lumia. There are choices, not many, but there are.

18. ram64GB

Posts: 48; Member since: Oct 22, 2014

Well! Well my dear Microsoft. We should celebrate this thing.

23. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

I hope that Microsoft can finally get it's 5h1t together with mobile. I sadly still have Microsoft stock.

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