Microsoft's profit better than expected - forecast falls short

Posted on Thursday, October 23 2008 @ 22:55 CEST by Thomas De Maesschalck
Microsoft unveiled a fiscal first-quarter profit of $4.37 billion, or 48 cents per share, on a revenue of $15.06 billion. Net income increased 2 cents per share compared to the same period a year earlier, while revenue rose 9%. Microsoft did better than what analysts had expected but the forecast is somewhat disappointing:
Analysts on average had estimated Microsoft would post earnings of 47 cents a share for the quarter, and $14.8 billion in revenue, according to FactSet Research.

"In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model," Microsoft Chief Financial Officer Chris Liddell said in a statement.

...

For its current quarter ending in December, Microsoft said it expects earnings between 51 cents and 53 cents a share, and between $17.3 billion and $17.8 billion in revenue. Analysts have been estimating the company would post earnings of 55 cents a share in the period and $17.9 billion in revenue.

For the full year, Microsoft said it expects earnings between $2 and $2.10 a share, and revenue between $64.9 billion and $66.4 billion. Analysts have been estimating the company would report earnings of $2.12 a share and $66.6 billion in revenue for the year, according to FactSet.
More info at MarketWatch. Microsoft's shares are up 1.79 percent in after-hours trading.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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