Microsoft reports earnings: short of expectations, but not by much


Microsoft posted earnings that fell short of expectations Tuesday while revenue topped Wall Street estimates.

The computer software maker earned 58 cents a share on revenues of $23.38 billion.

The company reported diluted EPS of 55 cents, but that figure included three cents worth of one-time charges. The 58-cent figure compares to analysts’ estimate of 60 cents a share, according to a consensus estimate from Thomson Reuters.

So much volatility, it’s hard to get any sense of direction from Redmond. A big part of this instability is the Nokia acquisition and pending layoffs.

Microsoft’s fiscal fourth-quarter revenue rose, but its profit fell, partly due to the effect of incorporating the handset business of Nokia, which it acquired in April.

And the bigger problem is morale:

“Microsoft needs to detail what their strategy is,” said Ross Gerber, CEO of Gerber Kawasaki, which has a stake in the tech firm. “Morale is down. They are firing a ton of people. The way he did it is very harsh. Nadella has to tell us where is Microsoft going, what’s the future growth for this company.”