Microsoft Corporation (MSFT): Looking Inside The Numbers

After the closing bell Thursday, Microsoft Corporation (NASDAQ:MSFT) posted its fiscal third-quarter earnings report, and the numbers seem to be received very positively on Wall Street in Friday pre-market trading, as the stock surged more than 3 percent just before the opening bell, portending a positive day to end the week.

Microsoft Corporation (NASDAQ:MSFT)

Overall, Microsoft Corporation (NASDAQ:MSFT) met expectations on the positive side, reporting more than $6 billion in profits on about $20.5 billion in revenue for the quarter, both numbers right about where analysts predicted. The numbers were increases of nearly 20 percent over the same time frame in 2012. On the one hand, there was some concern in the numbers due to the Windows division. Thanks to PC sales falling off the table, Windows essentially posted flat numbers this time compared to a year ago – accounting for the company’s Windows Upgrade Offer, revenues in Windows was flat at about $4.6 billion.

In that vein, the earnings report was positive due to successes in other areas of the diverse company. Here is a quick rundown of where Microsoft Corporation (NASDAQ:MSFT) did much of its profit damage this time around. The biggest success came in the company’s Entertainment and Devices Division, which saw a 56-percent increase in revenue from the prior year, to $2.53 billion. Microsoft reported more than 45 million Xbox LIVE subscriptions, which is almost 20 percent more than a year ago. And this comes despite the fact that Microsoft has struggled mightily in Japan – and is trying to do something about that – that has hampered its growth.

The other big jump came in the Online Services Division, which saw revenue spike 18 percent over 2012 with more than $830 million, while online advertising revenue rose more than 22 percent thanks to better revenue per search, according to the company. The Business Division – the company bread and butter for years – saw a modest 8-percent gain to more than $6.3 billion.

“The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE and Skype,” Microsoft Corporation (NASDAQ:MSFT) CEO Steve Ballmer said. “While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”

Let us know your thoughts about Microsoft and your take on what this earnings report means for the company now and going forward. In the wake of Apple’s decline in recent months, where does Microsoft Corporation (NASDAQ:MSFT) stand among yoru top five tech companies? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!