By Deepta Bolaky
Microsoft and Tesla, the two leaders in their respective industries reported their quarterly earnings results on Wednesday after the market closed. Both tech companies reported earnings exceeding expectations but the reaction in the after-hours trading was different altogether.
Tesla, the electric vehicle and alternative energy company reported a surprising profit for the second quarter. The Company reported a net income of $104 million and a positive free cash flow of $418 million. It earned $2.18 per share compared to a negative earnings per share of $1.12 a year ago. Tesla was able to offset its costs associated with the factory shutdowns by reducing expenses.
The Company reported positive quarterly earnings for the fourth consecutive times which may pave the way for the electric car maker to join the S&P500 index.
Earlier this month, the Company’s share price reached an all-time intraday high at $1,794.99 when the electric car pioneer decided to ramp up production of its semi-truck. The Company’s share price rose more than 5% in the after-hours trading after the release of the Q2 corporate earnings report.
The multinational software company has moved quickly to assist businesses, governments and non-profit organisations as the COVID-19 pandemic swept the world:
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” said Satya Nadella, chief executive officer of Microsoft.
The Company reported strong earnings driven by the outperformance of its cloud platform. As compared to the corresponding period of last fiscal year:
Just like Tesla, the Company’s share price hit an all-time closing price of $214.32 earlier this month.
Despite promising Q4 earnings report, its share price fell in after-trading hours. Azure grew by 47% compared to a growth of 64% in the corresponding period of last fiscal year which was the area of concern.
By Deepta Bolaky
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