Microsoft Earnings Report Avoids the Intel Trap (MSFT, INTC)
Microsoft Corporation (NASDAQ: MSFT) had recently hit on 52-week highs and multiyear highs ahead of earnings. Now we know why. The software and tech giant reported that its operating income was $6.37 billion for the quarter, or $0.60 in earnings…
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Investors had been a bit concerned since Intel Corporation (NASDAQ: INTC) had not blown its numbers out, and the thought was that if Intel was not stronger than expected and was at a multiyear high then perhaps the same would be true of Microsoft.
The total cash, cash equivalents and short-term investments came in at $59.529 billion. Here is a “by unit” breakdown with a comparison to a year ago:
- Server & Tools business posted $4.57 billion in third-quarter revenue, a 14% increase.
- Microsoft Business Division reported $5.81 billion in third-quarter revenue, a 9% increase.
- Windows and Windows Live Division posted revenue of $4.62 billion, a 4% increase.
- Online Services Division reported revenue of $707 million, a 6% increase.
- Entertainment & Devices Division posted revenue of $1.62 billion, a decrease of 16%.
Microsoft cut its operating expense guidance to between $28.3 and $28.7 billion for the full year ending June 30, 2012, and it sees 2013 expenses coming between $30.3 and $30.9 billion.
Shares are trading up 2.9% at $31.92 in the after-hours session and the 52-week high is $32.95. Thomson Reuters currently has a price target objective of $34.26 on Microsoft.
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.