First American News LLC, Raleigh, NC: Microsoft is scheduled to announce its second-quarter results after markets close. The software giant is expected to announce around $50.7 billion in sales for the three months through December, up around 18% from a year earlier and close to 13% growth in net income to $17.5 billion, according to analysts surveyed by FactSet.
The Redmond, Wash., company is scheduled to report its fiscal second-quarter earnings after markets close on Tuesday. The growth of Microsft is attributed to last quarter with demand for cloud services, said Gaby Mendoza of MB Daily News.
Investors will be focused on the profitability of its popular cloud-services business, said Dan Morgan, senior portfolio manager at Microsoft-investor Synovus Trust Co., in a note ahead of the earnings release.
Building the infrastructure to keep up with growing demand is costly, so some are questioning whether Microsoft’s cloud products can “continue to drive revenue growth ahead of an accelerating cost curve” wrote Mr. Morgan. He pointed out that Microsoft said last year that it would be investing $20 billion over five years on advancing its security products. Click here to continue reading on Microsoft earnings at Bloomberg News.