Massive Write-Down Leads to Largest-Ever Quarterly Loss — Microsoft Earnings

Microsoft reports its revenues were $22 billion in the last quarter.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $2.53. Gates III sold 4,000,000 shares of the stock in a transaction dated Tuesday, May 19th.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock.

Microsoft reported a $3.2 billion quarterly loss after it was forced to take a $7.5 billion impairment charge related to its failed acquisition of Nokia’s mobile device business. The shares opened for trading at $46.78 and hit $47.33 on the upside, eventually ending the session at $47.28, with a gain of 0.77% or 0.36 points. The 52-week high of the share price is $50.045 and the company has a market cap of $380,662 million. The transaction was disclosed in a legal filing with the SEC, which is available at this link. During the Microsoft Earnings conference call, Microsoft Chief Executive Officer Satya Nadella also stated that Microsoft’s total revenue has grown to $93.6 billion this year, reflecting an 8% increase year over year. Also, Cook & Bynum Capital Management Llc have 18.97% of their USA long stock exposure invested in the company for 717,081 shares. $22.45 million was the inflow in upticks and $14.69 million was the outflow in downticks.

As for its outlook for the first quarter of fiscal year 2016, Microsoft expects its revenue for phone hardware to be around $900 million.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th.

During the quarter, Microsoft returned $6.7 billion to shareholders in the form of share repurchases and dividends. Jefferies maintains their rating on the shares of Microsoft Corporation (NASDAQ:MSFT). On a constant currency basis, revenue and gross margin would have declined 2% and 3%, respectively, and operating income would have declined 1%. The higher price target estimate is at $60 while the lower price estimates are fixed at $39. The ex-dividend date is Tuesday, August 18th. The shares were sold at an average price of $48.25, for a total value of $48,250.00. The disclosure for this sale can be found here.

On the other hand, if this area holds as support and Microsoft’s strategy proves profitable, MSFT shares could still recover to the middle of the range or to the top eventually. The Company also designs and sells hardware, and delivers online advertising to the customers. It also offers cloud-based solutions that provide customers with software, services and content over the Internet by way of shared computing resources located in centralized data centers. This includes a 22 percent decreased revenue from Windows ecosystem as well as a 117 percent increased revenue from Surface tablets, 27 percent from Xbox game consoles and Xbox Live service and 21 percent from search advertisements.