Microsoft Earning Improve but Shares Fall

Brittney Barrett |

Microsoft (NASDAQ: MSFT) announced today that their latest quarterly earnings increased by 31 percent despite a decline in sales of the company’s Windows operating system. The good news; however, was not enough to push share prices higher for the day as analysts suspected that the weak performance in the Windows division may dim the prospects for next quarter. This is the second consecutive quarter that Windows has fallen from the year before and some infer that attention has been redirected to improving mobile devices. The fruits of that labor; however are not expected to have a major effect on earnings and revenue until next year.

The mobile device market is flooded with competition right now, with tech companies across the board attempting to capture some of the market share currently inhabited by the iPad. Microsoft is devoting a great deal of attention and spending to an area of its business that is risky as the core program that the company grew from, Windows, gradually declines. Naturally this is of some concern to its share holders who are wondering if the company will continue to thrive if this core part of its business withers.

For now, the earnings indicate that they continue to increase revenue in spite of lower Windows sales. The company earned $5.2 billion, or 61 cents share between January and March as compared with a net income of $4 billion, or 45 cents per share in the year ago period. Revenue grew by 13 percent to $16.4 billion.

 

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