Microsoft’s quarterly profit fell by 24 percent on higher costs and legal expenses, but the company reported revenues that beat expectations and announced a $40 billion share buyback program, sending shares sharply higher in after-hours trading.
Microsoft reported net income of $2.83 billion, or 28 cents a share, including three cents for legal charges. Excluding the charges, earnings per share were 31 cents, a penny ahead of Wall Street analysts’ expectations.
The company also announced a plan to buy back $20 billion worth of shares by Aug. 17 and authorized the purchase of $20 billion more through June 2011.
Microsoft reported sales of $11.8 billion, a 16 percent increase over the year-ago quarter; analysts expected $11.6 billion.
Microsoft expects much the same income in the current quarter on lower revenues. Press release is here. As far as the share buyback goes, I guess that despite all indications, Steve Ballmer really was listening to the grumpy investors although the buyback isn’t as big as some of them wanted.