Microsoft Beats Q3 Expectations, Shares Rise After Hours

Shares of

jumped more than 3 percent in after-hours trading after the company reported stronger-than-expected results for the third quarter. The Redmond, Washington-based company posted quarterly net income of $4.985 billion, or $0.61 per share, compared to $5.66 billion, or $0.68 per share, in the year-ago period. The recent quarter results included $0.01 per share in integration and restructuring expenses. Its revenue climbed 6 percent year-over-year to $21.73 billion. However, analysts were expecting earnings of $0.52 per share on revenue of $21.06 billion. Devices and Consumer revenue climbed 8 percent to $9.0 billion in the quarter, while Commercial revenue rose 5 percent to $12.8 billion. Office 365 Consumer subscribers rose 35 percent sequentially to over 12.4 million. The average estimate among 90 Estimize users was for earnings of $0.56 per share and revenue of $21.53 billion. "We executed with strong operational and financial discipline again this quarter, and are seeing positive impact from our investments in key growth areas," said Amy Hood, chief financial officer at Microsoft. "We remain focused on maximizing shareholder value and again increased our overall return of capital to shareholders." Microsoft shares surged 3.07 percent to $44.67 in the after-hours trading session.