Microsoft Reports Quarterly Loss on $13.8 Billion Charge From Tax-Law Changes -- Earnings Review

   By Maria Armental 
 

Microsoft Corp. (MSFT) reported second-quarter results on Wednesday. Here's what you need to know:

EARNINGS: Microsoft swung to a quarterly loss of $6.3 billion, or 82 cents a share, from a year-earlier profit of $6.27 billion, or 80 cents a share. Excluding the impact from the tax-law changes and other items, profit was $7.5 billion, or 96 cents a share. Analysts surveyed by S&P Global Market Intelligence expected Microsoft to report 86 cents a share.

TAX LAW: The Redmond, Wash., company recorded charges of $13.8 billion related to U.S. tax-law changes. Microsoft holds the second largest stash of cash abroad among U.S. corporations--behind Apple Inc. As of Dec. 31, Microsoft reported $142.8 billion in cash.

REVENUE: Revenue rose 12% to $28.92 billion, beating analysts' estimates of $28.41 billion. The two biggest pieces of Microsoft's cloud-computing operations--its Azure infrastructure services and Office 365 online-productivity business--saw revenue rise 98% and 41%, respectively.

DEBT: Microsoft ended the quarter with $73.35 billion in long-term debt.

STOCK: Shares, which set a record this week, fell 1% to $94.18 in after-hours trading.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

January 31, 2018 17:23 ET (22:23 GMT)

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