Microsoft posts second-quarter loss after US$13.8bn charge related to US tax reforms

Microsoft Corp. (NASDAQ:MSFT) shares were flat in pre-market trading on Thursday after the software giant reported a big quarterly loss after-hours on Wednesday due to the recently passed tax law.

The Windows software developer reported a second-quarter loss per share of 82 US cents, a drop from earnings of 80 US cents per share a year earlier, impacted by a net charge of US$13.8bn related to the US tax reforms.

Analysts had forecast Microsoft’s earnings at 87 US cents a share. On an adjusted basis, the company would have earned 96 US cents a share.

The Nasdaq listed firm saw its quarterly revenue rise to US$28.92bn, up from US$28.28bn, a touch better than the consensus forecast of US$28.41bn.

The group said revenue from Office consumer products and cloud services grew by 12% and Office 365 consumer subscribers increased to 29.2mln.

Microsoft shares fell 0.5% in after-hours trading but edged 0.1% higher in pre-market trade to US$95.12.

Story by ProactiveInvestors