Microsoft Reports Record Third-Quarter Revenue by D Klein – 4/22/10


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. 

image 

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.

image 

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:
http://blogs.wsj.com/digits/2010/04/22/live-blogging-microsofts-earnings-call/?mod=yahoo_hs

Advertisements

About IIEX

Click "About" in the menu at the top for more information about the author. We also have a page at "Seeking Alpha" ( http://seekingalpha.com/author/david-klein ). Please Click on and read the "Disclaimer" in the menu at the top. Have a question? Contact us at iiex@live.com.
This entry was posted in MSFT. Bookmark the permalink.

One Response to Microsoft Reports Record Third-Quarter Revenue by D Klein – 4/22/10

  1. Investor says:

    The following link is "An In-Depth Look at Microsoft’s Beat Quarter" by Zacks.comhttp://seekingalpha.com/article/200474-an-in-depth-look-at-microsoft-s-beat-quarter?source=email

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s