Microsoft Corp. (Nasdaq: MSFT) just stunned the Street, releasing earnings that beat even pre-coronavirus estimates. “In the third quarter of fiscal year 2020, COVID-19 had minimal net impact on the total company revenue,” the company said in a statement. Microsoft qualified the good news with an admission that while the virus has not yet impacted its balance sheet, it might in future quarters. In other words, of all goes to hell and there is no economy to speak of even the tech giant won't be immune. I put a buy on MSFT at the low of $135.98; the stock hit a high of $180 per share in after-hours trading Wednesday, a 32.2% increase.
Microsoft: By the Numbers
Here's a look at how they did.
Earnings: $1.40 per share, adjusted
Revenue: $35.02 billion
Microsoft fiscal third-quarter earnings of $10.75 billion, or $1.40 a share, on sales of $35 billion Wednesday, up from profit of $1.14 a share on revenue of $30.57 billion a year ago. Analysts on average expected earnings of $1.27 a share on sales of $33.76 billion, according to FactSet.
The company's figures were boosted by a solid performance by core offerings like its Azure cloud-computing business and Teams collaboration software, products that will continue to do well in the stay-at-home economy
The stock is a hold. The price target is $200 per share by the end of 2020.