Above your head: Alphabet and Microsoft financial results fell short of analysts' expectations.
The financial results of the giants - Alphabet and Microsoft - for the past quarter were worse than analysts had expected. A reasonable question arises - how do companies evaluate their success?
Alphabet (owned by Google) showed quarterly revenue growth of 17% yoy. Ruth Porat, the company's CFO, explained that revenue increased through mobile search, YouTube, as well as the automation of advertising purchases (programmatic advertising). The company (still within Google) has invested in these areas for many years in a row.
Consolidated revenue from the beginning of the year to March 31 rose to $ 20.26 billion, compared with $ 17.26 billion in the same period a year earlier. However, analysts predicted Alphabet revenue of $ 20.37 billion. Earnings per share, according to analysts, should have been $ 7.97. In fact, it did not exceed $ 7.50.
')
The company's net quarterly profit was $ 4.2 billion, compared with $ 3.5 billion a year earlier.
By the close of trading Alphabet shares lost more than 6%, writes Business Insider.
Alphabet financial results could be better than now, if the company had not spent a lot of money on research and experimental projects. Among them - unmanned vehicles, Calico (a project in the field of health), Google Life Sciences (now - Verily ). All of them are included in the report called “other incomes”. In addition, Nest and Google Fiber were included there.
“Other income” over the past quarter increased from $ 80 million to $ 166 million year-on-year. However, operating expenses rose from $ 633 to $ 802 million. This is due to a comprehensive approach to research and the development of pilot projects, explains Ruth Porat. The company cannot stop investing money in its future.
The company's profit in the third quarter of the fiscal year was $ 3.76 billion, whereas last year it earned $ 4.99 billion in the same period.
The company's profit amounted to $ 0.62 per share, with expectations of $ 0.64. After the announcement of the results, the company's shares fell by more than 5%, writes Business Insider.
A negative factor for the company's profits was a one-time adjustment of the tax rate, which was 24% instead of the usual 20-21%. As Microsoft financial director Amy Hood explained, if it were not for this, profits would have surpassed market forecasts.
At the same time, revenues of the company's cloud business grew by 3.3% to $ 6.1 billion. Microsoft representatives say they intend to more actively develop their cloud services.
“Digital transformation is our top priority. Both large companies with a developed business and just-launched companies use our cloud solutions to develop faster and make new profits, ” quotes Microsoft Air Force spokesman Kevin Turner.
Alphabet (owned by Google) showed quarterly revenue growth of 17% yoy. Ruth Porat, the company's CFO, explained that revenue increased through mobile search, YouTube, as well as the automation of advertising purchases (programmatic advertising). The company (still within Google) has invested in these areas for many years in a row.
Consolidated revenue from the beginning of the year to March 31 rose to $ 20.26 billion, compared with $ 17.26 billion in the same period a year earlier. However, analysts predicted Alphabet revenue of $ 20.37 billion. Earnings per share, according to analysts, should have been $ 7.97. In fact, it did not exceed $ 7.50.
')
The company's net quarterly profit was $ 4.2 billion, compared with $ 3.5 billion a year earlier.
By the close of trading Alphabet shares lost more than 6%, writes Business Insider.
Alphabet financial results could be better than now, if the company had not spent a lot of money on research and experimental projects. Among them - unmanned vehicles, Calico (a project in the field of health), Google Life Sciences (now - Verily ). All of them are included in the report called “other incomes”. In addition, Nest and Google Fiber were included there.
“Other income” over the past quarter increased from $ 80 million to $ 166 million year-on-year. However, operating expenses rose from $ 633 to $ 802 million. This is due to a comprehensive approach to research and the development of pilot projects, explains Ruth Porat. The company cannot stop investing money in its future.
Quarterly revenues of the American corporation Microsoft declined sharply due to falling sales of personal computers.The continued decline in this market reduces the demand for one-time licenses of some Microsoft products, the company notes.
The company's profit in the third quarter of the fiscal year was $ 3.76 billion, whereas last year it earned $ 4.99 billion in the same period.
The company's profit amounted to $ 0.62 per share, with expectations of $ 0.64. After the announcement of the results, the company's shares fell by more than 5%, writes Business Insider.
A negative factor for the company's profits was a one-time adjustment of the tax rate, which was 24% instead of the usual 20-21%. As Microsoft financial director Amy Hood explained, if it were not for this, profits would have surpassed market forecasts.
At the same time, revenues of the company's cloud business grew by 3.3% to $ 6.1 billion. Microsoft representatives say they intend to more actively develop their cloud services.
“Digital transformation is our top priority. Both large companies with a developed business and just-launched companies use our cloud solutions to develop faster and make new profits, ” quotes Microsoft Air Force spokesman Kevin Turner.
Source: https://habr.com/ru/post/300310/
All Articles