Microsoft Q3 earnings report: ‘I think it’s still inexpensive'

Microsoft Corporation (NASDAQ: MSFT) is volatile in extended trading after the tech giant reported market-beating results for its fiscal third quarter, thanks to strength across all of its businesses.

What Microsoft Q3 earnings report tells us

• Earned $16.73 billion in Q3 that translates to $2.22 per share.
• In the same quarter last year, earnings were $15.45 billion ($2.03 a share).
• Revenue jumped 18% YoY to $49.36 billion, as per the earnings press release.
• FactSet consensus was for $2.19 of EPS on $49 billion in sales.
• Productivity and Business Solutions popped up 16.5% in fiscal Q3.
• Intelligent Cloud climbed 25.5% on a 46% growth in Azure revenue.

$14.52 billion in More Personal Computing sales were much better than last year’s $13.04 billion. According to Microsoft, it’s software business brought in over $2.0 billion in additional revenue after lifting prices for Office 365.

All segments reported better-than-expected sales. Microsoft stock is now down 20% for the year.

Pete Najarian comments on Microsoft Q3 results

Despite the after-hours price action, MarketRebellion.com’s Pete Najarian says Microsoft had an impressive quarter. Speaking with CNBC’s Scott Wapner on “Closing Bell”, he said:

Growth slowed down just a little bit, still up north of 46%. I like what they have put up, it was a pretty impressive quarter. This is a cloud company and at 27 times, I think it’s still inexpensive and at a position where it’s well worth looking at it again.

Executives are expected to offer future guidance on the earnings conference call at 05:30 p.m.