Microsoft Beats Q1 Analyst Estimates (MSFT)

Microsoft (MSFT) released its first quarter earnings results on Thursday after the closing bell, posting earnings and revenues that beat analyst expectations.

MSFT’s Q3 Performance in Brief
- Revenue climbed 16% to $18.53 billion, above analysts’ estimates of $17.83 billion.
- Net income came in at $5.24 billion, or $0.62 per share, a significant increase from last year’s $4.47 billion figure ($0.53 per share). Analysts had expected EPS to come in at $0.55.
- Investors should note that these numbers reflect the deferral of $113 million of revenue primarily related to Windows 8.1 pre-sales.
- MSFT’s better-than-expected results were mostly driven by strong sales of its Office and server software to business, which offset weakness in its Windows system.

CEO Commentary
CEO Steve Ballmer commented, “Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers.” CFO Amy Hood added “We saw strong focus across our teams, generating record first-quarter revenue even as we navigate a fundamental business transition. Our enterprise renewals were very healthy and our devices and consumer business continued to improve. We are making strategic investments in areas like technological innovation, supply chain management, and global cloud operations to build for the future and create long-term shareholder value.”

Microsoft’s Dividend
Microsoft pays a quarterly dividend of $0.28 per share, or $1.12 annualized. MSFT is set to pay its next dividend on December 12, 2013 to shareholders of record on November 21, 2011, with an ex-dividend date of November 19, 2013.

Microsoft last raised its dividend on September 19, 2013 from the previous quarterly payout of 22 cents per share to 28 cents per share. The board of directors had also approved the new share repurchase program to replace the previous $40 billion share repurchase program that was set to expire on September 30. The new share buyback plan has no expiration date.

Shares Continue to Gain
Microsoft shares slipped 0.12% during Thursday’s session. Year-to-date, the stock is up  22.23%