Microsoft Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component Microsoft Corporation (NASDAQ:MSFT) reported its results for the first quarter. Microsoft 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 First Quarter

Results: Net income for Microsoft Corporation rose to $5.74 billion (68 cents per share) vs. $5.41 billion (62 cents per share) in the same quarter a year earlier. This marks a rise of 6.1% from the year earlier quarter.

Revenue: Rose 7.3% to $17.37 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MSFT fell in line with the mean analyst estimate of 68 cents per share. Analysts were expecting revenue of $17.25 billion.

Quoting Management: “We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid EPS growth,” said Peter Klein, chief financial officer at Microsoft. “Our product portfolio is performing well, and we’ve got an impressive pipeline of products and services that positions us well for future growth.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 30% and in the third quarter of the last fiscal year, the figure rose 30.6%.

Gross margin shrank 2.4 percentage points to 78.3%. The contraction appeared to be driven by increased costs, which rose 20.3% from the year earlier quarter while revenue rose 7.3%.

Revenue has risen the past four quarters. Revenue increased 8.3% to $17.37 billion in the fourth quarter of the last fiscal year. The figure rose 13.3% in the third quarter of the last fiscal year from the year earlier and climbed 4.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 69 cents versus a mean estimate of net income of 58 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 84 cents per share, up from 80 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.76 per to share to $2.85.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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