Microsoft shines while EBay declines post earnings

Microsoft has surpassed Wall Street expectations with its figures in the past quarter. Revenue grew 13 percent year-on-year to $23.3 billion, more than doubled to $6.5 billion. The stock...

Microsoft has surpassed Wall Street expectations with its figures in the past quarter. Revenue grew 13 percent year-on-year to $23.3 billion, more than doubled to $6.5 billion. The stock increased by a good 1 percent on Thursday.

The core growth driver remained the cloud business with services such as software and memory off the net. Revenue in this segment grew by 11 percent to $7.43 billion, while operating income grew by about 15 percent to $2.5 billion.

Computer sales, on the other hand, declined by 1.5 percent to $8.82 billion in the fourth quarter of the quarter, which ended at the end of June. The main reason for this was the substantial withdrawal from the smartphone business, which lost $361 million. Revenues from Microsoft’s Tablet brand and laptops fell by two percent as fewer devices were sold. The decline was partly offset by the sale of more expensive models, they said. For Windows revenues, there was a growth of two per cent.

On the flip side, the world’s famous online auction house eBay has presented its figures for the second quarter of 2017. The company could not meet expectations.

EBay posted sales of $2.3 billion in the second quarter of 2017. Analysts anticipated sales of $2.31 billion on average, so the company was in line with expectations. In the prior-year quarter, eBay reported sales of $2.23 billion.

The earnings per share of eBay in the second quarter of 2017 amounted to $0.45. Analysts expected an average of $0.447 per share. As eBay reported a profit of $0.43 per share in the prior-year quarter, the earnings improved, but investors were disappointed.

The e-commerce giant maintained the outlook for the third quarter. According to this, earnings per share in the third quarter are expected to be between $0.46 and $0.48. Analysts expect an average of $0.48 a share. For the current, eBay expects to see revenue in the range of $2.35 billion to $2.39 billion.

“Results and guidance suggest the year is ‘on track,’ although there will be some disappointment without a solid beat and raise,” Baird Equity Research analyst Colin Sebastian said in a research note. “There is unlikely a ‘quick fix’ to eBay’s slow volume growth profile.”

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