Microsoft gets more than expectations, led by Office, Xbox

Microsoft bested analyst revenue and earnings expectations today with fourth-quarter results buoyed by continued solid sales from its Office franchise and its server software business, as well as strong gains from its booming Xbox operations.

For the year, Microsoft posted operating income of $27.16 billion, up 13 percent, on sales of $69.94 billion, a 12 percent gain from fiscal 2010. Earnings per share grew 28 percent to $2.69.

Microsoft continues to generate huge sums of cash from its core businesses. At the end of the quarter, Microsoft was sitting on $52.7 billion, up 43 percent from June 30, 2010.

That cash allows the company to continue returning money, in various forms, to shareholders. In the fiscal year, Microsoft spent $16.9 billion on dividends and stock buybacks.
Wall Street seemed largely unimpressed by the results. In after-hours trading, Microsoft shares have barely budged, falling 9 cents to $27.

(Credit: Microsoft)

Posted in: Microsoft