Microsoft Expects Earnings Peak in Quarter

Microsoft Corp. said that its profit probably will exceed analyst estimates in the latest quarter, but the results may be the high watermark for 1998, as comparisons become more difficult. “Growth is slowing,” said Greg Maffei, chief financial officer of the Redmond, Wash.-based software giant. Maffei said Microsoft expects to report earnings about 4 cents higher than the First Call consensus of 44 cents a share for the fiscal third quarter ending March 31. Maffei said Microsoft’s office product line and European region were standouts in the quarter, but said business was strong across all product lines and geographic regions except Asia, which remains weak. In the year-earlier quarter, Microsoft had net income of $1.04 billion, or 79 cents a share, before accounting for a 2-for-1 stock split in February. Microsoft shares rose $1.06 to close at $84.94 on Nasdaq. The company announced its forecast after the close of trading.