Microsoft Corp Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component Microsoft Corporation (NASDAQ:MSFT) reported net income above Wall Street’s expectations for the fourth quarter. Microsoft Corporation develops, licenses and supports a range of software products and services for a variety of computing devices.

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Microsoft Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Microsoft Corporation rose to $5.87 billion (69 cents per share) vs. $4.52 billion (51 cents per share) in the same quarter a year earlier. This marks a rise of 29.9% from the year earlier quarter.

Revenue: Rose 8.3% to $17.37 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MSFT beat the mean analyst estimate of 58 cents per share. Analysts were expecting revenue of $17.25 billion.

Quoting Management: “Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion,” said Peter Klein, chief financial officer at Microsoft. “Our platform and cloud investments position us for long-term growth.”

Key Stats:

Gross margin shrank 1.6 percentage points to 78.7%. The contraction appeared to be driven by increased costs, which rose 17% from the year earlier quarter while revenue rose 8.3%.

Revenue has risen the past four quarters. Revenue increased 13.3% to $16.43 billion in the third quarter. The figure rose 4.9% in the second quarter from the year earlier and climbed 25.3% in the first quarter from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 56 cents per share.

Net income has increased 32% year over year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 51.4% from the year earlier quarter.

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Novell, Inc. (NASDAQ:NOVL), Oracle Corporation (NASDAQ:ORCL), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Yahoo! Inc. (NASDAQ:YHOO), Apple Inc. (NASDAQ:AAPL), Adobe Systems Incorporated (NASDAQ:ADBE), Intel Corporation (NASDAQ:INTC), and Sony Corporation (NYSE:SNE).

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(Source: Xignite Financials)