Microsoft barely beats Street, raises outlook thanks to Skype
Summary: Wall Street predictions continue to be on point this week as Microsoft matches on share earnings.
Next quarter earnings results could look very different for Microsoft following the recent acquisition of Skype. But for now, the Redmond, Wash.-based corporation turned out decent results.
Microsoft reported a net income of $5.74 billion, or 68 cents a share (statement) for the first fiscal quarter. Non-GAAP earnings were 68 cents a share on a revenue of $17.37 billion, up 7 percent from the same period of the prior year.
Wall Street was expecting of 68 cents a share on revenue of $17.23 billion.
See also: BNET: Microsoft Earnings Meet Expectations, But Glory Days Are Gone
In prepared remarks, Microsoft's chief operating officer Kevin Turner attributed this quarter's success to a spread of various products:
We had another strong quarter for Office, SharePoint, Exchange, and Lync, and saw growing demand for our public and private cloud services including Office 365, Dynamics CRM Online, and Windows Azure. With a great set of consumer products like Windows 7 PCs, Windows Phone 7.5, Xbox and Kinect, we are excited about the holiday buying season.
For the outlook, Microsoft is predicting a revenue of $28.6 billion to $29.2 billion at the end of second fiscal quarter, which is when Microsoft plans to start including the results stemming from the Skype purchase.
Wall Street is expecting 83 cents a share on revenue of $21.17 billion.
Key points:
- Windows 8 was given a grand unveiling at the BUILD developer conference in September.
- Windows Phone 7.5 released with many new features.
- Xbox was the best-selling gaming console in the United States for the ninth consecutive month.
- Bing is seeing greater integration across other Microsoft products, especially Xbox and Windows Phone.
By the numbers:
- Windows and Windows Live Division revenue was $4.87 billion, up two percent over the prior period, which Microsoft asserts is "in line with the PC market."
- Over 450 million licenses for Windows 7 sold since launch.
- Operating income was $7.20 billion, up 1 percent from the same time last year.
- The Microsoft Business Division reported $5.62 billion in first quarter revenue.
- Bing's organic U.S. market share grew 350 basis points year-over-year to 14.7 percent, while Bing-powered U.S. market share -- including Yahoo properties -- accounted for approximately 27 percent.
Related:
- Ballmer on previous Yahoo bid: 'Sometimes you're lucky'
- With Windows 8, Microsoft can't forget past antitrust issues
- Microsoft delivers developer preview of Roslyn compiler as a service
- Ballmer: Android users need to be 'computer scientists'
- Microsoft and Yahoo extend ad guarantee through 2013
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Talkback
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
LIES! All of it! This is the year of Linux! ;)
I hear Windows 8 will suck
So there is always next year. And if Windows 8 doesn't suck, I'm sure we'll hear that Windows 9 will suck. And if Windows 9 doesn't suck, I'm sure we'll hear that Windows 10 will suck.
Rinse.
Repeat.
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
Why bring Google into this?
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
+1
You actually made me LOL this morning.
RE: Microsoft barely beats Street, raises outlook thanks to Skype
Looks like they might have bought a lemon in Skype unless they fix it's serious security vulnerabilities.
http://www.networkworld.com/community/node/78986
RE: Microsoft barely beats Street, raises outlook thanks to Skype
Demise of MSFT greatly exaggerated.
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
Share price has gone nowhere in the last 10 years and it's going nowhere, invest your money elsewhere if you want growth.
RE: Microsoft barely beats Street, raises outlook thanks to Skype
The amount of money they are over expectations in <b>one quarter</b> would be enough to run the last place I worked for almost 100 years with no revenue.
For Microsoft it amounts to a rounding error.
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
What's really surreal...
And most pundits (including the ones here at ZDNet) have been declaring Microsoft technically doomed - a shuffling zombie of a company too stupid to realise they're dead...
And even when shown to be wrong... the reaction is to colour the article "Microsoft BARELY beats street...".
I'm sure if this had been Apple, the title would have been 'Apple surprises street by beating their expectations...'
RE: Microsoft barely beats Street, raises outlook thanks to Skype
RE: Microsoft barely beats Street, raises outlook thanks to Skype
How are the dividends in that mattress fund?