Microsoft Corp. announced record third-quarter revenue of $14.50 billion for the quarter ended Mar. 31, 2010, a 6% increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.17 billion, $4.01 billion and $0.45 per share. EPS for the trailing 12 months hit an all time high.
Since the launch of Windows 7 revenues earnings appear to be in a strong uptrend.
“Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services,” said Peter Klein, chief financial officer at Microsoft.Adding strength going forward the company deferred $305 million of revenue relating to the Microsoft Office 2010 Technology Guarantee program. They also lowered their operating expense guidance by 200 million for the full year ending June 30, 2010. The other segments appear to have stabilized if not a very slight upward trend and I’d expect slight revenue increases going forward.
Overall another solid quarter. After hours the stock was trading around 30 which is a PE of about 15.5 based on TTM EPS. Compared to AAPL-26, GOOG-25, ORCL-23.5, Industry PE-28 and it appears MSFT is trading at a discount.
Some highlighted comments from the conference call can be found at: