Microsoft’s Q3 Profit Falls 18%, Beats View, Shares Rise (MSFT)
Software behemoth Microsoft Corporation (MSFT) on Friday posted 3rd quarter earnings that fell 18% from last year, but its shares rose as results were enough to easily beat analyst forecasts.

The Redmond, Washington-based company reported third quarter net income of $3.6 billion, or 40 cents per share, compared with $4.4 billion, or 48 cents per share, in the year-ago period. On average, Wall Street analysts expected a lower profit of 32 cents per share.

Revenue fell 14% from last year, to $12.9 billion, largely due to deferred revenue stemming from free Windows 7 upgrades the company gave to new PC buyers in the summer. The new Windows 7 operating system launched on Wednesday, and aims to be a more successful follow-up to the company’s Vista operating system.

Microsoft shares rose $1.99, or +7.4%, in morning trading Friday.

We have been recommending shares of MSFT since Aug.28, when the stock was trading at $24.69. The company has a 1.96% dividend yield, based on last night’s closing stock price of $24.69.

Microsoft Corporation (MSFT) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.