REDMOND, WASH. (AP) - Microsoft’s earnings for the latest quarter edged up 6 percent to match analyst estimates.
The results for the July-September period were highlighted by revived growth in the division that includes the software maker’s Windows franchise. It’s the first time that Microsoft has posted a year-over-year gain in Windows revenue since the end of 2010.
The results for the July-September period were highlighted by revived growth in the division that includes the software maker’s Windows franchise. It’s the first time that Microsoft has posted a year-over-year gain in Windows revenue since the end of 2010.
The company, which is based in Redmond, Wash., also narrowed its losses in its online division, which has struggled to catch up to Google Inc. in the Internet’s lucrative search advertising market.
Microsoft Corp. earned $5.7 billion, or 68 cents per share, for its fiscal first quarter. That compared with net income of $5.4 billion, or 62 cents per share, at the same time last year. The earnings matched the average estimate among analyst surveyed by FactSet.
Revenue increased 7 percent from last year to $17.37 billion _ about $130 million above analyst forecasts.
By surpassing Wall Street’s revenue hurdle, Microsoft achieved something that eluded nemesis Apple Inc. during the same period.
Although Apple’s revenue in the most recent quarter surged 39 percent from year, the increase didn’t measure up to analyst expectations. The shortfall triggered a sharp drop in Apple’s stock price.
But investors didn’t’ immediately reward Microsoft for its showing either. The software maker’s shares fell 36 cents to $26.68 in extended trading.
Microsoft’s stock price has been held back by worries that it isn’t adapting quickly enough as more people use smartphones and computer tablets such as Apple’s iPad instead of desktop and laptop computers that run on the Windows operating system. Three consecutive quarters in declining Windows revenue reinforced those concerns.
In the latest quarter, though, revenue in the Windows division crept up nearly 2 percent $4.87 billion. The modest gain was slightly below the 3.2 percent to 3.6 percent rise in personal computer shipments during the quarter, based on estimates by Gartner Inc. and IDC.
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