Microsoft's 2Q earnings dip despite Windows 8 lift
earnings were a penny above the average estimate of analysts surveyed by FactSet, while the total revenue fell below analysts' projections by about $100 million.
Microsoft's stock shed 43 cents, or 1.6 percent, to $27.20 in Thursday's extended trading, after the release of results. The stock has remained stuck below its price before Windows 8 and Surface came out, signaling that investors aren't pleased with the products' performance so far.
“This is going to be a `show-me' year for Microsoft, and there was nothing to really shout about in this quarter,'' Olson said. “So what we are seeing is sort of a shrug from investors.''
Besides debuting Windows and Surface during the most recent quarter, Microsoft also released a new version of its operating phone for smartphones.
Moorhead called the Surface and the new software line-up the ``keys to Microsoft's future.''
If Microsoft's revamped software for tablets and smartphones catches on, it would help the company overcome a downturn in PC sales, which has reduced licensing revenue during the past year. Worldwide PC shipments fell 3.5 percent last year, marking the industry's first annual decline since 2001, according to the research firm Gartner Inc.
Despite Microsoft's high hopes and an elaborate marketing campaign, Windows 8 appears to have gotten off to a tepid start. Technology reviews have panned the software as too confusing and cumbersome to navigate, and none of the hundreds of devices running on Windows 8 emerged as a breakout hit during the holiday season.
A big chunk of Microsoft's Windows revenue in the holiday-season
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