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