Microsoft Q3 earnings beat Wall Street expectations
Revenue gains from its Windows operating system and cloud computing services like Azure were offset by the lack of special upgrade offer revenues from a year ago.business Updated: Apr 25, 2014 02:53 IST
Microsoft Corp. posted flat revenue and a decline in net income for the January-March quarter. Revenue gains from its Windows operating system and cloud computing services like Azure were offset by the lack of special upgrade offer revenues from a year ago.
The results beat analyst expectations and the company's shares rose $1.01, or 2.5%, to $40.87 in after-hours trading. They had closed up 17 cents at $39.86 in the regular session.
Net income in the quarter through March 31 came to $5.66 billion, or 68 cents per share, down from $6.06 billion, or 72 cents per share, in the same period a year ago.
Revenue was nearly unchanged at $20.40 billion, compared with $20.49 billion a year ago.
Analysts polled by FactSet expected Microsoft to post earnings of 63 cents per share on revenue of $20.39 billion.
Revenue from devices and consumer products rose 12% to $8.30 billion as the company sold more Xbox One game consoles and consumers upgraded systems from Windows XP, for which Microsoft ended support earlier this month.
Commercial revenue grew 7% to $12.23 billion, as revenue grew from its Office 365 productivity software. Azure revenue more than doubled.
Total revenue gains of $1.7 billion from various segments were offset by a $1.8 billion decline in upgrade offers revenue.