Microsoft Earnings Win Botched By Poorly Timed Release (MSFT)
Microsoft Corp. (NASDAQ: MSFT) somehow managed to release its earnings early and before the close rather than after the close of trading. The software giant reported earnings in the last quarter of $0.77 EPS with a net income of $6.63…
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As the tablet world and smartphone world is getting by without Microsoft, Windows sales were disappointing at $5.05 billion as industry-wide PC sales lagged. The big new pop that may have boosted revenues was that Microsoft said it sold 8 million Kinect units in 60 days, which brought a 55% revenue jump for Entertainment and Devices. The Business Division showed 24% growth due to Office demand.
The company announced that during the quarter, it bought back $5 billion in stock and declared $1.3 billion in dividends. Without the full guidance we are treating this as unfinished business.
Microsoft closed up 0.3% at $28.87 in regular trading and shares first popped but then sank based upon the mixed news. The after-hours session has shares around $28.80.
The public should be outraged that companies can just release earnings on their website rather than via a public newswire. Public companies should be held to higher standards than this. The SEC talks about the freedom of information and Regulation FD, but this is a move away from it to have to deal with such a dual standard.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
