Microsoft reported its Q4 2014 earnings today, beating Wall Street’s revenue estimates but falling short of earnings per share (EPS) projections. The company made $23.38 billion in Q4, just barely beating Wall Street’s $23 billion projection. EPS for the fiscal quarter was $0.55, falling short of estimates placing it at $0.60
The company recently swallowed up Nokia’s device division, which it says brought in $1.99 billion in phone revenue for the quarter. However, Microsoft says the Nokia acquisition dragged down earnings by $0.08, causing it to miss Wall Street’s projections. The company plans to layoff 18,000 employees, mostly from the Nokia division, over the next six months, which should boost its EPS down the line.
Meanwhile, Microsoft Office 365 gained over a million new subscribers this quarter, possibly thanks to Microsoft’s new Office for iPad productivity suite. Microsoft says its Bing search engine is still growing, with search advertising revenue up 40 percent. The company’s cloud revenue also grew by an impressive 147 percent. CEO Satya Nadella noted that commercial cloud revenue doubled again this year for a $4.4 billion annual run rate.
Microsoft share price is up about 0.60 percent in after hours trading.