This Giant is Still a Strong Buy: Microsoft Corporation (MSFT)

Segments

Windows 8 sales were better than expected and were reported at $5.05 billion, compared to the $5.02 billion analysts estimated. The quarter doesn’t fully account for the impact of Windows 8 sales and I believe the next quarter will also reflect improvement in Windows segment. The real surprise came from the office segment, which reported sales of $6.03 billion, compared to estimates of $5.36 billion, almost 13% higher than expected. The sever unit also beat estimates with $4.39 billion, while Xbox missed slightly with revenues of $3.7 billion.

Windows Phone

The focus is still on the success of the Windows Phone 8. It is still too soon to hail the product as a success or loss. According to the recent earnings release from Microsoft’s smartphone ally Nokia Corporation (ADR) (NYSE:NOK), the company reported WP8 boarded Lumia sales of 4.4 million. Although the number is very small compared to what investors expect from Apple or Samsung, it is an indication that WP8 has broken through. Investors should also understand that the low sales from WP8 are also due to the limited global availability of Lumia and sales figures that do not reflect full quarter results.

The article This Giant is Still a Strong Buy originally appeared on Fool.com and is written by Mohsin Saeed.

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