Microsoft earnings hit target; client, business divisions shine
Microsoft's fiscal fourth quarter earnings hit their targets courtesy of a
For the quarter ending June 30, Microsoft reported earnings of 31 cents a share, including charges related to a revised Xbox 360 warranty policy. Excluding that charge earnings were 39 cents a share.
Revenue was $13.37 billion, up 13 percent from a year ago. According to Thomson Financial Microsoft was expected to report earnings of 39 cents a share on revenue of $13.27 billion.
For its fiscal year, Microsoft had a whopping $51.12 billion in revenue and earnings of $1.42 a share including charges. Excluding charges earnings would have been $1.49 a share. Those figures are in line with estimates.
In a statement Thursday Microsoft CFO Chris Liddell said:
"Our results this quarter cap off an extremely strong fiscal year for the company. We have healthy core businesses and are strategically investing in growth opportunities, which will build on our success and contribute to continued double-digit revenue and earnings growth in fiscal year 2008."
As for the outlook for the first quarter endingSept. 30 Microsoft projected earnings per share of 38 cents a share to 40 cents a share on revenue of $12.4 billion to $12.6 billion. For fiscal 2008 Microsoft is expecting revenue of $56.8 billion to $57.8 billion and earnings of $1.69 to $1.73 a share.
Those projections are also in line with expectations.
Other fourth quarter items:
- Fourth quarter client revenue was $3.8 billion, up from $3.3 billion a year ago. Operating income was $2.8 billion.
- Servers and tools had revenue of $3 billion and an operating profit of $1 billion.
- Online services revenue was $688 million, up from $588 million a year ago. The division lost $239 million though.
- The business division brought in revenue of $4.6 billion, up from $3.9 billion. Operating profit was $2.99 billion.
- And the entertainment and devices unit had revenue of $1.16 billion and a loss of $1.2 billion.