Why Did These Big Stocks Decline After the Closing Bell?

The Dow (NYSE:DIA) traded slighty higher on Thursday.

These big stocks announced earnings on Thursday and are actively traded in pre-market trading this morning:

1) Microsoft (NASDAQ:MSFT): The company reported a profit of $19.95 billion (77 cents per share) for the most recent quarter.  This was an increase from last year’s $19 billion (74 cents per share) in the same quarter.  The entertainment division continues to Kinect with consumers.  The divsion grew 55% from the prior quarter due to strong holiday sales of its new Kinect system and games.

2) Amazon (NASDAQ:AMZN): After gaining 5% during Thursday’s market hours, shares fell almost 9% after earnings surprised investors in late trading.  Although revenue increased by 36% to $12.95 billion for the fourth quarter, it was a miss by Wall Street’s expectations of $13 billion.

3) SanDisk (NASDAQ:SNDK): Fourth quarter revenue increased 7% year over year to $1.33 billion.  This was in line with analysts estimates of $1.3 billion.  However, earnings per share of $1.27 crushed estimates by 19 cents.  Shares traded down 2% as margin concerns surfaced.  For example, operating profit declined 8% from the thrid quarter.

4) AT&T (NYSE:T): Fourth quarter net income decreased to $1.1 billion (18 cents per share).  Net income took a 26 cent hit due to a pension accounting change.  Earnings of 55 cents grew 7.8% from last year.  Shares slipped 2% during trading, but the company’s high dividend of 6% remains in tact.

5) Procter & Gamble (NYSE:PG): P&G shares were the worst performer in the Dow on Thursday.  The company reported that commidties cost the company $1 billion for the fiscal year, which is more than twice what it expected.  Sales only increased 2% to $21.3 billion.  Earnings from continuing operatins of $1.13 per share beat estimates of $1.10, but were helped by a lower than expected tax rate of 18%.

Disclosure: No positions.

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