Not-So-Smartphone: Microsoft Misses on Earnings Due to, Yep, Nokia
Microsoft turned in a pretty decent fourth quarter, with revenue of $23.4 billion, handily beating analyst estimates of $23 billion. But it missed on earnings per share — 55 cents, which was below the 60 cents expected, due to an eight cent per share loss related to its Nokia acquisition.
Last week, the software giant did a massive layoff of employees that hit particularly hard at the smartphone unit, which still has not yielded the benefits expected when the deal was struck.
In its press release on the quarter, Microsoft noted this about the cuts: “The pre-tax costs associated with this plan are estimated to be between $1.1 billion and $1.6 billion and will be recorded in fiscal year 2015, substantially in the first half of the fiscal year.”
The phone hardware division, said the company, represented “$1.99 billion to current year revenue.”
On a happier note, search revenue for its Bing unit was up 40 percent, with U.S. search share just over 19 percent. Also doing well were Microsoft cloud efforts, up 147 percent.
“We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation and focused execution,” said CEO Satya Nadella. “I’m proud that our aggressive move to the cloud is paying off — our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate.”
Nadella, CFO Amy Hood and other Microsoft execs will be in a conference call with analysts at 2:30 pm PT today to discuss the results.
Until then, here are all the fancy charts and numbers to peruse: