Although Microsoft's
The Redmond, Wash., giant reported a record $17.4 billion in revenue for the third quarter, a 7% rise that translated into $0.68 of earnings per share. Top-line revenue bested the consensus estimate of $17.2 billion while bottom-line earnings were right on target. Sales were bolstered by strong sales of the company's flagship Office offering and Windows sales ticked up slightly.
Windows and Windows Live inched up 2% in lockstep with the PC market, and Windows 7 licenses have reached a cumulative total of 450 million licenses sold. Microsoft's revenue for its productivity server offerings -- which includes Lync, SharePoint, and Exchange -- jumped by double-digits, while the server and tools segment posted a 10% increase year over year.
During the quarter, the company closed its acquisition of Skype, began rolling out its Windows Phone 7.5 Mango update, and unveiled Windows 8 at its BUILD developer conference. The Xbox scored a ninth consecutive month of being the top-selling game console domestically, besting Sony's
Bing's organic U.S. market share increased to 14.7% and Bing-powered U.S. market share, including Yahoo!
Mr. Softy also bumped its dividend during the quarter by a healthy 25%, increasing it to $0.20 per share for the quarter, to the cheers of Microsoft dividend lovers. At the current levels, the company is handing out an annual yield near 3%.
No one really expects blowout quarters from Microsoft anymore, but the company still has what it takes to churn out consistent free cash flow -- $25.1 billion over the past twelve months. If you like rock-solid dividend stocks, then Microsoft is a candidate for your portfolio, along with these 11 stocks.
- Add Microsoft to your Watchlist.