Microsoft’s 3Q Beats Street, Company Announces Smaller Tablets
The fervor over the PC market going down in flames and how that will affect PC giant Microsoft can settle a bit after the company’s third quarter 2013 beat analyst estimates. The company posted revenue of $20.5 billion on $0.72 EPS, marking an 18 and 20 percent increase annually, respectively. That’s compared to analyst expectations of $20.1 billion on $0.68 EPS.
Speaking with investors, Microsoft CFO Peter Klein looked to calm fears over how his company was handling the transition toward the touch-enabled and mobile devices the U.S. market craves. He mentioned the Surface Pro convertible the company released during the quarter and looked ahead to smaller tablets—presumably 7-inch devices—that he said Microsoft would release in the coming months.
Microsoft’s Business, Servers & Tools, Windows, Online Services and Entertainment & Devices Divisions all saw annual increases in revenue.
Speaking at the D: Dive Into Mobile conference earlier this week, Microsoft VP Terry Myerson, who works in the Windows Phone department, said his company sees no reason to make its own smartphone. Although Microsoft OEM partner Nokia posted dire numbers for its first quarter of the year, it did see a 27 percent growth in Lumia sales, its flagship smartphone running Windows Phone.
Looking further out, Klein talked about his imminent departure from Microsoft, saying he leaves confident in the company’s financial future. Klein plans to retire at the end of Microsoft’s current fiscal year. The company said it would name his successor in the coming weeks.
Microsoft’s stock prices are up more than four percent as of 8:54 a.m. CT.