Microsoft beats Wall Street on new CEO debut

SEATTLE Fri Apr 25, 2014 4:17am IST

The Microsoft logo is seen at their offices in Bucharest March 20, 2013. REUTERS/Bogdan Cristel/Files

The Microsoft logo is seen at their offices in Bucharest March 20, 2013.

Credit: Reuters/Bogdan Cristel/Files

Related Topics

Stocks

   

SEATTLE (Reuters) - Microsoft Corp's (MSFT.O) new chief executive got off to a winning start with Wall Street on Thursday as the world's largest software company eased past analysts' profit estimates despite the pressure of falling computer sales.

Its shares rose almost 3 percent in after-hours trading to $40.96, keeping the stock at levels not seen since the turn-of-the-century Internet stock boom.

Microsoft shares are up about 8 percent since company veteran Satya Nadella took over as CEO in early February, and are up 19 percent since his predecessor Steve Ballmer announced plans to retire last August, easily outpacing the Standard & Poor's 500.

Investors are excited about Nadella's focus on mobile and cloud, or Internet-based, computing, designed to take Microsoft beyond its traditional PC-based Windows business. Nadella is set to face analysts' questions for the first time in public on a conference call later on Thursday.

"This quarter is a nice step in the right direction for Nadella and Microsoft," said Daniel Ives, an analyst at FBR Capital Markets. "We would characterize these results as solid in a choppy IT spending environment."

Nadella's emphasis on cloud computing helped its server software business, while a softer-than-expected decline in PC sales limited damage to the bottom line.

The Redmond, Washington-based company reported quarterly profit of $5.66 billion, or 68 cents per share, compared with $6.05 billion or 72 cents in the year-ago quarter.

The decline was exaggerated by deferred revenue boosting the year-ago figure, and the latest quarter's profit beat Wall Street's average estimate of 63 cents per share, according to Thomson Reuters I/B/E/S.

Sales fell 0.4 percent to $20.4 billion, meeting analysts' average estimate.

Personal computer sales fell by as much as 4.4 percent in the quarter, according to the two major technology research firms, making the eighth straight quarter of declines as tablets and smartphones gain in popularity.

That decline was likely muted by the end of Microsoft's support for its decade-old Windows XP system in early April, which appears to have prompted many people to buy a new computer.

(Editing by Cynthia Osterman and Matthew Lewis)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage