Microsoft Shares Hit Record High

Microsoft Corp. shares rose 4.6% to a record after the software maker said earnings for this quarter will beat analyst estimates even as profit tapers off for the rest of the year. Shares climbed $3.88 to close at $88.81 in Nasdaq trading. Earlier shares touched $90.94, a record high. Microsoft’s optimistic forecast came as investors looked for good news from technology companies after profit warnings from Intel Corp. and Compaq Computer Corp. Still, Microsoft faces several areas of concern. These include a prediction that this year’s most anticipated product, Windows 98, will generate only about $500 million, or 4% of last year’s sales. Also moderating Microsoft’s 1998 prospects is slowing sales growth for personal computers, most of which use the company’s Windows operating system. PC sales growth is expected to fall to 13% this year from 16% in 1997, according to market research firm Dataquest. Redmond, Wash.-based Microsoft said it will report earnings of about 48 cents a share for the third quarter ending Tuesday, topping estimates by 4 cents.