Microsoft Corporation (NASDAQ:MSFT) delivered higher earnings and revenue than predicted, for the fiscal second quarter. Initially, the shares fell in extended trading but then turned positive, after the company issued a sales projection that likewise exceeded expectations.

In its fiscal second quarter, which ended Dec. 31, the Redmond, Washington, based company earned $2.48 per share on sales of $51.7 billion. The company was anticipated to earn $2.32 per share on $50.7 billion in revenue, according to analysts.

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The revenue grew by 20% year over year, compared to a nearly 22% rise in the prior quarter. In addition, the company’s net income increased by 21% to $18.77 billion.

Microsoft also reported that, at the end of the year, the company had $36.77 billion in unearned revenue, which was lower than many analysts’ expectations of $36.90 billion. Microsoft also said that it expects to recognise 45 percent of its $152 billion in remaining performance obligations over the next year, the lowest percentage since at least 2017. 

Microsoft technical analysis

Source – TradingView

In the last month, MSFT has been trading in the $276.05 – $344.30 range, which is quite wide. It is currently trading near the lows of this range.

Microsoft stock surged 3.8 percent in after-hours trading on the stock market yesterday, closing near $299.50. Microsoft shares fell 2.7 percent during the regular session to close at $288.49. 

On November 22, 2021, Microsoft stock reached a new high of $349.67. However, as of Tuesday’s close, the stock had fallen 14% since the start of 2022 and was on track to have its worst month since 2010.

This slump coincided with a broad selloff in technology equities, as investors prepare for higher interest rates.

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