Earnings Fell Despite Strong Sales

Microsoft Corporation faced contraction in eps, despite strong Intelligent Cloud segment results and overall Sales growth in the fourth quarter 2020, income fell by -14.19 % to $1.46 per share, while Sales increased in double digits by 12.8 % to $38.03 billions, from the same quarter a year ago.

From third quarter 2020, income improved by 4.51 % from $1.40 per share and Sales advanced by 8.6 % from $35.02 billions.
Only one section improved Intelligent Cloud +7.62%, while following segments recorded decrease in revenues Productivity Business Processes -2.84%, More Personal Computing -16.51%.
Intelligent Cloud earnings improved by 13.96%, but income declined in Productivity Processes and More Personal Computing segments, these were major factors for -15.05 % decline, in company's net earnings from $13,187.000 millions in the corresponding period a year before. Microsoft Corporation shifted it's focus on improving sales in the fourth quarter 2020, as a result net margin eased to 29.45%.
Looking into financial results for the fiscal year 2020, Microsoft Corporation reported Sales of $143.02 billions and net income of $44.28 billions.

Software & Programming Company explained also, that Income per share increased by 13.83 % to $5.76 per share from $5.06 in the previous fiscal year, while Sales advanced by 13.65 % from $125.84 billions a year ago.

Microsoft Corporation is expected to report next financial results on October 22, 2020.