Microsoft will release 2021 second-quarter financial results on Jan 26th

Microsoft

Microsoft has now announced that it will release fiscal year 2021 second-quarter financial results on Tuesday, Jan. 26, 2021. As usual, a live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.

In the last quarter, Microsoft’s sales numbers were ahead of analyst estimates, EPS was $1.82 against the estimate of $1.54 and the revenue was $37.2 billion against the estimate of $35.7B. Operating income was $15.9 billion and increased 25%. Net income was $13.9 billion and increased 30%.

Microsoft provide the following forward-looking guidance for the upcoming 2021 second-quarter results.

In our commercial business, expanding addressable markets, differentiated value, and consistent execution should drive another quarter of increased usage and growing commitment to our platform that drive commercial bookings. However, a declining expiry base will impact growth.

As always, large, long-term Azure contracts are more unpredictable in their timing and an increasing mix of these long-term agreements drives more quarterly volatility in bookings.

And though trends have improved a bit, growth will continue to be impacted by transactional weakness. A strong prior year comparable that included the end of support for Windows 7 and Windows Server 2008, as well as transactional strength in Japan across our Office businesses, will also impact growth rates.

In our consumer business, we expect some benefit from continued consumer PC market growth, though at a more moderated growth rate than last quarter given the traditionally high volume of PCs sold every Q2.

Commercial cloud gross margin percentage will increase approximately 3 points year-over-year, again driven by the change in accounting estimate noted earlier. Excluding this impact, continued improvement in Azure IaaS and PaaS gross margin will be offset by mix shift to Azure. And on a dollar basis, we expect capital expenditures to be roughly in-line with last quarter to support growing usage and demand for our cloud services.

Now to FX. Based on current rates, we expect FX to increase total company revenue and operating expense growth by approximately 1 point and have no impact on COGS growth. Within the segments, FX should increase Productivity and Business Processes and Intelligent Cloud revenue growth by approximately 1 point and have no impact on More Personal Computing revenue growth.

Source: Microsoft

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