Microsoft Corp. lifted its full-year forecasts on Thursday after posting one of its biggest quarters in recent history, topping analysts’ estimates on strong sales of "Halo 3" and Vista.
The world's largest software maker saw its shares rise eleven percent in after-hours trading to more than $35 a share, its highest point in years.
Microsoft overall saw its profits rise 23 percent, to $4.29 billion whilst companywide, revenues hit $13.76 billion, up 27 percent - the company's highest first-quarter growth rate since 1999.
Revenue at the Windows client division, focused on PCs, rose nearly 25 percent in the quarter whilst operating profit at the segment went up 27 percent to $3.37 billion.
Earnings per share were 45 cents – topping analysts’ expectations of six cents.
However, the company continued to experience growing pains in its online division, with the division losing $264 million for a fifth-straight quarter.
Raising forecasts
Microsoft raised full-year revenue targets across its business divisions with an optimistic forecast for the current holiday quarter.
The Redmond-based company raised full-year earnings estimates to a range of $1.78 to $1.81 per share from a previous range of $1.69 to $1.73.
It also boosted its annual sales forecast by $2 billion with expectations in the range of $58.8 billion to $59.7 billion.
Wall Street analysts, on average, were forecasting fiscal 2008 earnings of $1.73 per share on revenue of $57.3 billion.
October 26 2007
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