Microsoft Corp. (MSFT) Tops Q3 EPS by 4c; Adjusted Windows Revs Flat
Microsoft Corp. (NASDAQ: MSFT) reported Q3 EPS of $0.72, $0.04 better than the analyst estimate of $0.68. Revenue for the quarter came in at $20.49 billion versus the consensus estimate of $20.56 billion.
Dilluted EPS improved 8 percent.
Higlights from each business section:
- The Microsoft Business Division posted $6.32 billion of revenue, an 8% increase from the prior year period. Adjusting for the net recognition of revenue related to the Office Upgrade Offer and Pre-Sales, Microsoft Business Division non-GAAP revenue increased 5%. During the quarter, we launched the new Office, enhancing productivity and the user experience through new mobility, social, and cloud features.
- The Server & Tools business reported $5.04 billion of revenue, an 11% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.
- The Windows Division posted revenue of $5.70 billion, a 23% increase from the prior year period. Adjusting for the recognition of revenue related to the Windows Upgrade Offer, Windows Division non-GAAP revenue was flat. During the quarter, we added to the Surface family of devices with Surface Pro.
- The Online Services Division reported revenue of $832 million, an 18% increase from the prior year period. Online advertising revenue grew 22% driven by an increase in revenue per search.
- The Entertainment and Devices Division posted revenue of $2.53 billion, an increase of 56% from the prior year period. Adjusting for the recognition of revenue related to the Video Game Deferral, the division’s non-GAAP revenue increased 33% for the third quarter. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period.
Adjusting for the European Commission fine, Microsoft is revising operating expense guidance downward and now offers a range of $30.2 billion to $30.5 billion for the full year ending June 30, 2013. Microsoft also offers preliminary fiscal year 2014 operating expense guidance of $31.6 billion to $32.2 billion, representing 4 to 6% growth from the mid-point of fiscal year 2013 adjusted guidance.
The company also announced that CFO Peter Klein would be leaving the company.
For earnings history and earnings-related data on Microsoft Corp. (MSFT) click here.