BOSTON ( TheStreet) -- Microsoft ( MSFT) has reported quarterly results.
Quarterly Synopsis: Microsoft's fiscal second-quarter GAAP revenue climbed 5% to $20 billion, a record. Earnings per share rose 4% to 77 cents. The company's operating margin declined from 45% to 41%, hurt by one-time gains in the year-ago quarter. The entertainment and devices unit grew revenue 55%, helped by solid holiday sales of Xbox 360 and quicker-than-anticipated adoption of the Kinect sensor for that product. The business division boosted sales 24%, helped by outstanding sales of Office 2010, now the fastest-selling consumer version in product history. Microsoft has sold 300 million Windows 7 licenses to-date. Bing is gaining market share. Earnings Performance: Microsoft delivered 77 cents of adjusted earnings per share, representing 4.1% year-over-year growth and exceeding the Wall Street consensus estimate by an impressive 13%. By comparison, Microsoft has an average earnings beat rate of 5.9%. The company has now beaten expectations in eight consecutive quarters, but by widely differing margins. Microsoft's top-line figure passed the consensus target by 4.2%. The company has an average sales beat rate of 1.2%. It has beaten sales forecasts in five consecutive quarters. Dividend Information: Microsoft pays a quarterly dividend of 16 cents, converting to an annual yield of 2.2%. The company has boosted the distribution 5.8% in the past 12 months and 10% and 11% annually, on average, over three- and five-year horizons. Credit Suisse, Outperform, $36 Target Deutsche Bank, Buy, $35 Target UBS, Buy, $35 Target Citigroup, Buy, $32 Target JPMorgan, Neutral, $30 Target Barclays, Equal Weight, $29 Target