Microsoft Q2 Earnings Summary

After trading hours on Thursday (Jan. 24), Microsoft announced its second quarter earnings and "guidance" for the next business quarter, and estimated earnings for the year.

Earnings were 16.37 Billion dollars* for October through December (Q2 on MSFT's fiscal year calendar); this versus a "consensus estimate" by "the street" of 15.95 Billion dollars.

* USD $ 16,370,000,000.00

Actual (net) profit was 4.71 Billion dollars, which means that it somehow cost 11.66 Billion (that's with a capital "B", now) to run the company.

Depending on how they do the accounting, of course... For example, through the magic of numbers, second-quarter revenue and profit growth rates are exaggerated when compared to results a year ago. Why? Because Microsoft "deferred" more than $1 billion in net income, based on delays in releasing Windows Vista and Office 2007.

Total sales of the Vista operating system (not 3-month sales) were reported as being over 100 million copies.

For comparison, that's equivalent to a copy of Vista for every man, woman and child in California [36.4 million], Oregon [3.7 million], Washington state [6.4 million], Arizona [6.1 million], Nevada [2.5 million], Idaho [1.4 million], Wyoming [0.5 million], Montana [0.9 million], North Dakota [0.6 million], South Dakota [0.7 million], Utah [2.5 million], Colorado [4.8 million], New Mexico [1.9 million], Texas [23.5 million], Oklahoma [3.6 million], and Louisiana [4.3 million]*.

* estimates based on 2006 U.S. Census Beureau numbers.

Or, if you prefer another number to use to put the number 100 million in context:
the July 2007 population estimate for the United Kingdom is 60.7 million. Japan: 127 million. Germany: 82.4 million.

Microsoft representatives also said that Microsoft has shipped 17.7 million 'Xbox 360' consoles since the machine went on sale two years ago (November 22, 2005).

Full Year revenue was estimated on the "conference call" to be between 59.9 to 60.5 Billion dollars by the end of the current fiscal year.

Microsoft said profit in the year ending June 30 will be $1.85 to $1.88 a share, on sales of $59.9 billion to $60.5 billion.

Photo © REUTERS/Shannon Stapleton, taken January 2007

File Under: "it's Business, not Enterprise"
Posted by Liberty Miller, 24 January 2008

stocks for week of oct 15 to 19, 2007

October 19th marks the 20 year anniversary of 1987's "Black Monday".

• S&P has lost 3.7% since record close on October 9


• Dow has lost 4.2% since record close on October 9


• S&P 500 down for fourth time in 5 sessions (trading days)


• Dow's current losing streak is longest in over two months


• Stocks for today have worst weekly performance (overall drop) since late July


• QID (an EFT that trades at the inverse of the daily performance of the NASDAQ-100 index) is up 4.90% for the day.

My Watchlist:

• SanDisk got hit hard today: Close= $42.71 Loss= -$7.60 Percentage Loss= -15.11%
  
  Shares of Sandisk Corp. dropped Friday after the flash memory drive maker said third-quarter profit fell 18 percent as a result of acquisition charges.


• CSCO : down -3.61 %


• ORCL


• QQQQ


• MRVL


• NVDA : down -5.37 % , but still UP for the week (+5% since Monday, was up almost 10% yesterday)


• SPY  : down -2.62 %


• EMC :


• AAPL

 

mover notes (from business week.com)

3M Co. (MMM) posts third quarter EPS of $1.32, vs. $1.18 a year ago, on 5.4% sales rise. It raises $5.40-$5.60 2007 EPS guidance to $5.54-$5.62, which includes estimated full year 2007 net gain of $0.60-$0.65 per share, due to special items.

Honeywell International (HON) posts third quarter EPS of $0.81, vs. $0.66 a year ago, on 9.8% sales rise. It raises 2007 sales guidance by $300 million to $34.2 billion, EPS guidance to $3.14-$3.16, free cash flow to $3.0 billion.

Advanced Micro Devices (AMD) posts $0.71 third quarter loss per share, vs. $0.27 EPS a year ago, as narrowed year-over-year gross margin, higher R&D and acquisitions costs offset 23% revenue rise. S&P reiterates hold.

Google (GOOG) reports third quarter EPS (GAAP basis) of $3.38, vs. $2.36 a year ago. Excluding one-time items, EPS was $3.91. Revenue rose 57% to $4.23 billion. The report was better than analysts expected.

SanDisk (SNDK) posts third quarter EPS (non-GAAP) of $0.54, vs. $0.61 a year ago, despite a 38% revenue. rise. It says prices will likely decline "moderately more" in the fourth quarter than in third quarter. It says it may not be able to meet 100% of the strong demand it sees through the fourth quarter holiday season. S&P says while third quarter EPS was below its estimate, upgrades to buy from hold.

NEW YORK, October 19 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on SanDisk Corporation (SNDK.NAS), while raising their estimates for the company. The target price has been reduced from $58 to $52. [Price close for 10/19: $42.71 ; 52-week high: $62.05 ] Likely range: $47 (+10%) to $52.97 (+23.8%)

...

Continue to hold EMC? Purchased @ $19.41; currently $22.38; gain of 15.3% (+$920) ...

---

Windows tip of the day: You may know that [Ctrl]+[Z] is "Undo" ... but did you know that [Ctrl]+[Y] is "Redo" (un-do your last un-do)?

• for most Macs: Undo = CMD+[Z]


• for Windows [Ctrl]+[Shift]+[Z] also does redo, because it is the alternate (Shift key) form of [Ctrl]+[Z].


• likewise, for Macs the Redo key combination is CMD+[Shift]+[Z].