Microsoft announced a fiscal third-quarter profit of $4.38 billion, or 47 cents per share, on a revenue of $14.45 billion. Sales were up from $14.39 billion to $14.45 billion but net income was three cents per share lower than the year before.
Bloomberg writes Microsoft topped analyst expectations and says the software sector seems to be doing pretty well:
Microsoft, whose Windows program powers more than 90 percent of the world's personal computers, beat estimates for the third quarter in a row as PC purchases climbed. Shipments rose 15 percent as sales overseas offset slowing growth in the U.S., according to researcher IDC. Microsoft had forecast growth of as much as 11 percent.
``The software sector seems to be doing pretty well,'' Brent Williams, an analyst at Benchmark Co. in New York, said before the report. PC demand ``seems to be running a bit higher than expectations.''
Analysts on average predicted earnings of 44.5 cents a share in the third quarter. Profit and sales a year ago were helped by $1.67 billion in Windows and Office software orders held over from the previous quarter for accounting reasons.
Microsoft said sales in the year that starts in July will rise to $66.9 billion to $68 billion, compared with the $66.6 billion average of analysts' estimates in a Bloomberg survey. Profit will increase to $2.13 to $2.19 a share, compared with an estimate of $2.11.
Microsoft (MSFT) dropped 4.18 percent in afterhours trading.