Investing

Microsoft Beats Earnings Estimates, Generates Record Revenue

Microsoft (NASDAQ: MSFT) reporter fourth quarter earnings that beat analyst expectations Thursday, although revenue slightly missed Wall Street estimates.

Excluding special charges due to writedown of AQuantive, Microsoft earned 67 cents a share on revenue of $18.1 billion. Wall Street analysts expected earnings of 62 cents a share on revenue of $18.2 billion, according to data compiled by Thomson Reuters.

Including the special charge, Microsoft recorded a net loss of $492 million, or 6 cents a share. This is the first quarterly loss for the Redmond, Wash.-based software company since it went public 26 years ago.

Microsoft earned $17 billion, or $2.02 a share, based on revenue of $73.7 billion in 2012. This compared to earnings of $23.2 billion, or $2.69 a share, in 2011. Revenue in 2011 was $69.9 billion.

“We delivered record fourth quarter and annual revenue, and we’re fast approaching the most exciting launch season in Microsoft history,” Steve Ballmer, chief executive officer of Microsoft, said in a statement. “Over the coming year, we’ll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners.”

Shares of Microsoft popped 2.43% in the first 40 minutes of after-hours trading to $31.43. Shares of Microsoft closed Thursday up 0.56% to $30.62. The stock price is up 13.75% in 2012 as of market close.

Samuel Weigley

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