Microsoft beats Street profit view, shares up

19/04/2012 - 21:32

(Reuters) - Microsoft Corp beat Wall Street's profit forecast as computer sales held up better than expected, lifting its shares 2.5 percent after hours.

The world's largest software maker reported quarterly profit of $5.11 billion, or 60 cents per share, compared with $5.23 billion, or 61 cents per share, in the year-ago quarter when it posted a one-time tax gain.

Profit beat analysts' average forecast of 57 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose 6 percent to $17.41 billion, driven by strong demand for its server software products and Office application. Analysts had expected sales of $17.18 billion.

Worldwide personal computer sales rose a modest 1.9 percent in the quarter, according to tech research firm Gartner Inc. That was better than expected in a market facing hard-drive shortages from Thailand and the onslaught of Apple Inc's iPad, but still showed weakness from the key U.S. consumer market.

MICROSOFT (MSFT.NQ)rose to $31.77 in extended trading, after closing at $31.01 on Nasdaq.

The stock is up 20 percent so far this year, outpacing the tech-heavy Nasdaq's 16 percent gain, and a 10 percent rise in the Standard & Poor's 500.

(Reporting By Bill Rigby; Editing by Richard Chang)