Microsoft Earnings: Revenue Ticks Up

S&P 500 (NYSE:SPY) component Microsoft Corporation (NASDAQ:MSFT) swung to a loss in the fourth quarter, missing analysts’ forecast. Microsoft develops, licenses, and supports a range of software products and services for a variety of computing devices.

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Microsoft Corporation Earnings Cheat Sheet

Results: Reported a loss of $492 million (6 cents per diluted share) in the quarter. The computer software had net income of $5.87 billion or 68 cents per share in the year-earlier quarter.

Revenue: Rose 4% to $18.06 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Microsoft Corporation fell short of the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $18.11 billion.

Quoting Management: “We delivered record fourth quarter and annual revenue, and we’re fast approaching the most exciting launch season in Microsoft history,” said Steve Ballmer, chief executive officer of Microsoft. “Over the coming year, we’ll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 6% to $17.41 billion in the third quarter. The figure rose 4.7% in the second quarter from the year earlier and climbed 7.3% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 3 cents, and in the second quarter, it was ahead by 2 cents.

After three consecutive quarters of profits, the company declared a loss in the latest quarter. The company reported a profit of $5.11 billion in the third quarter, a profit of $6.62 billion in the second quarter and $5.74 billion in the first.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 73 cents a share to 67 cents over the last ninety days. The average estimate for the fiscal year is now $2.69 per share, down from $2.72 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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