Oct 26, 2017

Microsoft earnings top estimates amid cloud strength

Microsoft CEO Satya Nadella. Photo: Microsoft

As was the case with Intel, Microsoft reported earnings Thursday that topped Wall Street expectations even as the PC business remained flat.

The bottom line: Microsoft's strength continues to be its cloud computing area, with its business cloud generating $20 billion in annualized revenue, reaching that milestone ahead of a goal set two years ago.

The software giant reported per-share earnings of 84 cents, ahead of consensus estimates of around 72 cents, while revenue of came in at $24.5 billion, ahead of Zacks consensus projection of $23.5 billion

Here are some other highlights:

  • Microsoft's Office commercial products and cloud services revenue increased 10%, as revenue from its Office 365 service for businesses grew 42%.
  • Sales of Windows for new PCs were up 4%, ahead of the flat PC market.
  • Microsoft saw sales from its Surface PC line up 12 percent, while gaming revenue from its Xbox unit was largely flat.
  • LinkedIn accounted for about $1.1 billion of Microsoft's revenue.

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Trump administration asks Congress for $2.5 billion to fight coronavirus

President Trump with Health and Human Services Secretary Alex Azar at the White House in September. Photo: Chip Somodevilla/Getty Images

The Trump administration sent a request to Congress Monday for a funding commitment of at least $2.5 billion to help combat the spread of the novel coronavirus, a spokeswoman confirmed to Axios.ยท

Details: The request for a lump sum account for the Department of Health and Human Services includes $1.25 billion in new funds to fight COVID-19 and $535 would come from untouched funds for the Ebola virus.

WHO won't call coronavirus a pandemic as cases spread

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The World Health Organization will not yet call the coronavirus a pandemic, claiming that needs across affected countries are too varied and the classification would increase fear, per a briefing Monday.

The big picture: As South Korea and Italy stepped up emergency measures in efforts to thwart the spread of the virus, WHO expressed concern about infections with no clear link to China. COVID-19 has killed at least 2,620 people and infected almost 80,000 others, with all but 27 deaths occurring in mainland China.

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The coronavirus is spreading quickly in cities nowhere near Wuhan, China, and the window to prevent a global pandemic is narrowing.

Zoom in: Here's a look at what comes with a coronavirus outbreak in communities outside China that have been hardest hit so far.

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