Microsoft Earnings Show Growth With Surface, Office 365

micrMicrosoft reported stronger than expected first quarter fiscal earnings on Thursday led by strong growth with its cloud based offerings and higher revenue with its devices and consumer business.

Shares of the Redmond company are over 4 percent higher in premarket on Friday.

Microsoft reported revenue of $23 billion and .54 cents a share, beating consensus estimates of  $22.013 billion in revenue and .49 cents a share according to the estimate from Facstset.

“We are off to a great start to the year” said Microsoft CEO Satya Nadella during the conference call.

Devices and consumer revenue grew 47 percent to $10.96 billion with Office 365 Home and Personal subscribers totaling more than 7 million, representing 25 percent growth over the quarter.

Surface Pro 3 pushed Surface revenue higher to $ 908 million.

Xbox console sales jumped to $ 2.4 million, an increase of 102 percent which comes as Xbox One launches in 28 new markets.

Phone hardware revenue exceeded $ 2.6 billion.

Commercial revenue grew 10 percent to $12.28 billion, led by 128 percent growth in commercial cloud revenue driven by Office 365, Azure, and Dynamics CRM

“Customers are embracing our latest technologies from Surface Pro 3 and Office 365 to Azure and SQL server,” said Kevin Turner, Chief Operating Officer at Microsoft.

For the quarter, Microsoft took a $ 1.14 billion or .11 cent a share hit from integration and restructuring expenses due to its Nokia Devices and Service business.

-Johnathan Schweitzer

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