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Microsoft Q2 Net Beats View, Led by Kinect Sales (MSFT)

Software superpower Microsoft Corporation ( MSFT ) late Thursday said its fiscal second quarter profit fell slightly from last year, but results easily beat analyst expectations.

The Redmond, WA-based company reported fiscal second quarter net income of $6.63 billion, or 77 cents per share, compared with $6.66 billion, or 74 cents per share, in the year-ago period.

Revenue rose 5% from last year to $19.95 billion.

On average, Wall Street analysts expected a much smaller profit of 68 cents per share, on slightly lower revenue of $19.2 billion.

Although sales of its flagship Windows 7 operating system lagged in the latest period (revenue down 29%), that decline was more than made up for by strong sales of its new Kinect motion capture video game peripheral. The company said it sold 8 million Kinect units in the period, which helped boost revenue at its Entertainment and Devices unit by 55%.

Microsoft shares were mostly flat in premarket trading Friday.

The Bottom Line

Shares of Microsoft ( MSFT ) have a 2.22% dividend yield, based on last night's closing stock price of $28.87. The stock has technical support in the $25-$27 price area. If the shares can firm up, we see overhead resistance around the $31 price level.

Microsoft Corporation ( MSFT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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