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NEW YORK (TheStreet) -- Microsoft  (MSFT) stock is surging by 6.46% to $55.42 in after-hours trading on Thursday, after the company reported its fiscal 2016 second quarter financial results, which came in ahead of expectations. 

After the market close, the technology company reported adjusted earnings of 78 cents per share, ahead of analysts' expectations for 71 cents per share.

Revenue was $25.69 billion for the quarter, compared to expectations for $25.26 billion.

Last year, Microsoft reported earnings of 70 cents per share on revenue of $26.47 billion for the fiscal 2015 second quarter. 

Revenue in Microsoft's closely watched Intelligent Cloud segment grew by 5% to $6.3 billion. Analysts had forecast for revenue of $6.29 billion, reports.

However, revenue growth within the company's More Personal Computing business declined by 5% to $12.7 billion for the quarter. A 49% decline in phone revenue outweighed a 29% increase in revenue from Microsoft's Surface devices. 

Microsoft's Productivity and Business Processes unit saw revenue fall by 2% to $6.7 billion in the quarter, although Office 365 customers increased to 20.6 million.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A.

Microsoft's strengths include its solid stock price performance, increase in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations.

You can view the full analysis from the report here: MSFT

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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