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Microsoft earnings reports is OK, though not spectacular

Yesterday afternoon was the turn of Microsoft (MSFT), which provides reports earnings for Q1 2011. Their financial statements are still good, though hardly extraordinary. And after Microsoft announced its earnings report, shares of MSFT fell to 1.5%.

They managed to slightly exceed the revenue consensus estimate ($ 16.19 billion) and reached $ 16.43 billion. The number indicates Microsoft revenues increased 13% over the same quarter last year. Similarly, the EPS (Earnings Per Share), which surpassed the consensus estimate ($ 0.56) until it reaches $ 0.61. However, according to an investor, Doug Kass, if Microsoft did not helped with a one-time tax benefit ($ 0.005 per share) as well as some income from investments; of course they will not be able to exceed the EPS consensus estimates. Microsoft managed to get a net income of $ 5.23 billion.

Windows sales dropped by 4%, this was driven by the declining of PC sales by 3%. The Business Division (Office) remains a mainstay with tremendous growth. They rose nearly 21% in 2 last quarters. It is cannot be separated from the launch of Microsoft Office 2010 and other products in the spring of 2010. Business Division achieved revenue of $ 5.25 billion with operating income of $ 4.31 billion.

Microsoft suffered losses in the online business’ sector. Although managed to achieve revenue of $ 648 million, up 14% over the same period last year. However, they actually record operating loss of – $ 726 million. Microsoft’s investor relations head, Bill Koefoed, stated that the decline was due to declining of revenue per search.

However, Microsoft did not need to worry, that loss can still be covered by the profits from other sectors. In fact, cash is now the company has grown to $ 50.15 billion. It is up about more than $ 9 billion compared to the previous quarter ($ 41 billion).

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Posted by on Apr 29 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.
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