Microsoft Corp. (NYSE:MSFT) reported a 14 percent profit increase for its fiscal second quarter of 2014 on Thursday. After a strong first quarter, Microsoft saw continued profit increase through its consumer sector during the holiday season.
The Redmond, Wash., company reported net income of $6.56 billion and earnings per share of 78 cents a share, compared with a net income of $6.38 billion and 76 cents a share in the year-earlier period. The company also reported revenue of $24.52 billion, compared with $21.46 billion in last year’s second quarter.
Microsoft's earnings exceeded analysts' expectations of a more moderate earnings increase at $23.68 billion and 67 cents a share. The profit is largely credited to strong sales of its commercial products, including the Surface 2 tablet and Xbox One. Following the $900 million writedown of the Surface RT tablet in the second quarter of 2013, revenue from Surface tablets is now $893 million, up from $400 million in the previous quarter. Approximately 7.4 million Xbox consoles were sold in the second quarter, including 3.9 million of the recently released Xbox One consoles. According to Microsoft CEO Steve Ballmer, the devices and consumer segment alone grew 13 percent to $11.91 billion in the second quarter.
Microsoft shares gained 2.6 percent, to $36.06 on Friday.