Thanks, Kinect! Microsoft Q3 Earnings Soundly Beat the Street, So Will a Stock Rise Finally Follow?
Software giant Microsoft soundly beat Wall Street expectations in its third-quarter earnings released after the market closed today.
Microsoft said it had revenue of $16.43 billion for the quarter ended Mar. 31, 2011, which was up 13 percent from a year ago. Net income was $5.23 billion, or 61 cents per share, a rise of 31 percent and 36 percent, respectively.
Investors were expecting the Redmond, Wash. tech company to have profits of 56 cents per share, up 45 cents per share in the same quarter last year. Revenue was expected to come in at $16.2 billion.
As usual, Microsoft beating of expectations still has not helped its lackluster stock, which is down almost 14 percent year over year.
Its shares are currently down more than two percent in after-hours trading, to $26.09.
That’s due to worries about PC market growth, in the wake of an explosion of tablet and smartphone devices from competitors such as Apple and Google.
Most of Microsoft’s divisions were up in terms of revenue, especially its Xbox, Kinect and Office businesses. That offsetted slowing PC growth, Microsoft said, as well as a 4.5 percent drop in revenue in its flagship Windows and Windows Live division.
BoomTown will be liveblogging the earnings call at 2:30 pm PT.
Until then, here is the official press release: