Microsoft earnings pretty much in line, revenue growth less than 3% with Windows Division leading the way
It’s earnings season and Microsoft must have shuttered when it watched Apple report record revenue and profits only to see its stock slump 12 percent. For the previous number one tech company in the world, the prospect of reporting its small revenue growth must have been frightening.
But report you must, and Microsoft did today after the close of the markets. This report concerns Microsoft’s Q2 (Apple was reporting its Q1) and revenue grew to $21.46 billion for the quarter that ended December 31, 2012, up 2.7 percent. Operating income and net income for the quarter were $7.77 billion and $6.38 billion.
The problem for Microsoft is that this quarter saw the introduction of Windows 8, and it was the Windows Division that held up the company, with revenue growing 24 percent.
But both the Business Division and the Entertainment and Devices Division saw revenue fall by double digits. Also, the company failed to reveal the sales numbers for its new Surface tablet, taking a similar position as Amazon, though it should be said that this has not stopped Amazon’s CEO from making claims about the success of its sales.
Nonetheless Microsoft’s CEO was as effusive as ever: “Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Ballmer.
Despite the earnings report, after hour stock trading is seeing Microsoft’s share price falling only modestly to just over $27 a share, down 2 percent.