Microsoft Beats Analysts' Expectations

Microsoft got a shot in the arm this morning as the NASDAQ opened and shares in the company rose almost 10% in pre-market trading.

The reason for the rise is two fold, Microsoft have announced better than expected results, which although lower than this time last year are an improvement on where analysts believed they'd be.

Earnings per share were expected to be just 32 cents however shareholders and investors will be more than pleased with the 40 cents earning per share.

The second reason is the low key, but highly successful launch of Windows 7. Sales of the latest version of Windows are already massive with pre-orders outstripping those for the last Harry Potter book on the UK Amazon site and expected to hit volumes of around 177 million by the end of next year.

Industry knowledge banks such as Gartner are predicting that Windows 7 will be the next step for businesses and Forrester predicts that Windows 7 will be rolled to the majority of UK businesses by the end of 2011.