All hail Microsoft Corporation (NASDAQ:MSFT)! Your favorite tech juggernaut just shared another incredible set of financials this week. With the resources it dedicates to cloud, productivity and personal computing, MSFT pushed out a report even stronger than last quarter.
Microsoft’s most recent profit call leaves every investor nodding their head in approval. The company came out swinging with increases across the board. Its total revenue climbed 10 percent based on constant currency figures. Operating income reveals a 16 percent increase based on constant currency figures. Even earnings per share is up by a significant margin. Diluted EPS based on constant currency figures shows a 43 percent climb.
This week’s revelation is unlike that of April 27. Back then, Microsoft Corporation shared an impressive set of results too. Its third quarter results failed to hit the nail on the head, though, so to speak. In the wake of that announcement, shares dropped some 2 percent before picking up again.
That didn’t happen this time around. Even after the US tech major released its fourth quarter results, its stock value continued to climb. Microsoft looks poised to begin Tuesday trading in the red, down 0.17 percent 4 hours ahead of the opening bell.
But the main thing which investors got this week was more assurance, and dividends. Say what you will about Microsoft, but it is proving to know its business better than all the naysayers. More important to note is that the company’s core business is growing at a rapid rate. Better yet, that growth translates to greater dividend payments, as seen at its latest report.
Why you just have to love Microsoft right now
It is hard not to cheer for the software giant. For all its minor failures, it remains supreme in many other aspects. Under CEO Satya Nadella the company adopted a focus on cloud, AI and remote services. This worked out very well, indeed. The adoption of corporate cloud services along with the innovation of Azure makes Microsoft Corporation a market head runner.
After all, Microsoft is no ordinary tech corporation. It is common knowledge that the company was founded in 1975 by now-billionaire Bill Gates. The years have done nothing to slow it down either. Today, the Windows giant stands as the greatest software developer around the world.
Looking at its market cap, Microsoft ranks at the third most valuable company in the U.S. The top two places go to the makers of the iPhone, Apple Inc., and Google’s parent company, Alphabet. However, with a market cap of around $572 billion, MSFT is certainly not a loser’s stock.
Why you just have to love this week’s results
Compared to last quarter, this week’s results are a step up. Microsoft Corporation’s biggest growing business unit right now is Productivity and Business Processes. This unit climbed some 21 to 23 percent, based on the inclusion of currency fluctuations. Productivity and Business Processes were reported at $8.4 billion for Q4.
There is no slowing down the company’s Intelligent Cloud services either. The likes of Azure raked in a $7.4 billion for MSFT in the fourth quarter. This climb is rather impressive too, and comes the latest in a series of increases for the Microsoft cloud. Overall, Q4 saw an 11 percent jump for this division.
Looking at the drawbacks, the vaguely titled More Personal Computing unit is down only 2 percent. However, it still manages to pull in $8 billion for MSFT. Corporate and Other is another unit worth considering. Even though this unit reflects a $1.4 billion loss, it is still up 32 percent.
Overall, revenue for the last quarter stood at $23.3 billion, up 13% from the previous year.
Dividends from Microsoft Corporation (MSFT)
Shareholders have to love Microsoft for its dividend payment though. That is up some 43 percent compared to the same period last year. That figure accounts for non-gaap factors though. Yet for a corporation as massive as it is, MSFT does not skim on its payouts to shareholders.
In fact, a total $4.6 billion was pushed out to shareholder in the previous quarter. Microsoft Corporation gave out $3 billion via EPS and $1.6 billion by way of share buybacks. The firm sits well secured by its cash flow too. That sits at $8.7 billion and represents a 50 percent climb compared to last year.
In actuality, shareholders might agree that MSFT is the most investor- rewarding stock around. The firm is a part of the Dividends Achievers group, which comprises of 265 members. The group lists the most dependable dividend stocks worldwide. Such stocks have been pushing increased dividends for its shareholders for over 10 years.
Still on the fence about Microsoft Corporation (NASDAQ:MSFT) Tuesday trading sees MSFT trading higher after a more than pleasing set of financials. Perhaps it is time you got your hands one of the most rewarding stocks around.