Microsoft just posted its fiscal third quarter 2014 earnings, noting an earnings per share (EPS) of 68 cents, beating the Wall Street consensus calling for an EPS of 63 cents. The firm reported revenues of $20.4 billion for the quarter, right on the money with what Wall Street was looking for. The firm noted revenue growth in its Devices and Consumer and Commercial sectors.
Microsoft’s Devices and Consumer group reported revenues of $8.30 billion, up 12 percent from the same period last year. That was largely due to an increase in Windows OEM revenue, which was up 4 percent, and Windows OEM Pro revenue, up 19 percent. Apparently OEMs aren’t shying away from Windows 8 too much.
Meanwhile, Microsoft said it added 1 million subscribers to Office 365 in three months, bringing its total subscriber base to 4.4 million subscribers. That may have been driven by the release of Office for iPad, which requires the subscription.
Microsoft sold 2 million Xbox consoles during the quarter, including 1.2 million Xbox One consoles. It also said its Surface revenue increased more than 50 percent to $500 million for the quarter, while revenue from the Bing U.S. search engine increased 18.6 percent. Revenue from search ads increased 38 percent, Microsoft said.
Meanwhile, Microsoft’s commercial revenue increased 7 percent to $12.23 billion, thanks to impressive performance from Office 365, Azure, Windows volume licensing and Microsoft’s other enterprise offerings. The company also added that it is still on track to close its acquisition of Nokia tomorrow, April 25.
Shares of Microsoft closed the day up 0.43 percent and are trading up about 2.61 percent on its earnings.