Microsoft: Headed for an Earnings Miss?

Is Microsoft (MSFT) heading for an earnings miss in the December quarter?

At this point, it wouldn’t be a big surprise. The company’s most recent guidance reflected Microsoft’s forecast that PC units would be up 10%-12% in the quarter Clearly, that’s not happening, with both AMD and Intel projecting sharp declines in microprocessor sales in Q4. After Intel warned on the December quarter, the Street brought down its numbers for Microsoft; with AMD’s warning yesterday, and talk that Intel might have to further reduce guidance, Microsoft’s current guidance just doesn’t make sense.

Heather Bellini, software analyst at UBS, told Bloomberg today that Microsoft could be headed for its first earnings shortfall since 2000. In fact, she said every one of the company’s five divisions are likely to miss both the company’s guidance and the Street consensus of $17.3 billion and 41 cents a share. Bellini’s own forecast is for $16.7 billion and 48 cents.

“Enterprises have gone on a buyer’s strike just like consumers have,” Bellini told Bloomberg. “You see the unemployment numbers - I don’t think people are worrying about upgrading laptops and desktops.”

MSFT today is up 35 cents, or 1.83%%, to $19.46 at 3:02PM ET.

Comments

[hernje:]

How about more articles without question marks, at the end of the headline????? I, for one, am looking for information and facts; not maybes, possibilities,or theories. That should be left in High School creative writing. Of all the industries that have fallen off a cliff, in America, journalism may have fallen the furthest.

2008 Dec 05 05:31 PM

[maverta:]

yeah, a real buyers strike. msft seems to be really suffering with their 16.7 billion dollars in revenue, for the quarter. from 17.3 billion during the worst recession we have ever seen in our lifetime, seems that they might be able to eat. this sensationalism crap has got to stop. kind of reminds me of all the crap I see everyday on cnbc.

2008 Dec 05 07:12 PM

[HaavBline:]

To hemje:

I think you have come to a wrong site. This site is 'seeking alpha', not wikipedia. Investors/speculators 'seek alpha' from maybes, possibilities, theories. You have to make your onw judgement.

2008 Dec 05 08:02 PM

[steveballmer:]

Don't believe this people! We hav NEVER missed earnings!

2008 Dec 06 04:59 AM

[icandoitdon:]

"Heather Bellini, software analyst at UBS, told Bloomberg today that Microsoft could be headed for its first earnings shortfall since 2000. In fact, she said every one of the company’s five divisions are likely to miss both the company’s guidance and the Street consensus of $17.3 billion and 41 cents a share. Bellini’s own forecast is for $16.7 billion and 48 cents."

Huh? what's wrong with this picture. this analyst is 7 cents above the street and think MSFT might miss estimates.

i guess she's playing it both ways, huh? she's right if they beat and she's right if they miss. gotta love those duplicitious investment banks. follow their advise at your own peril.

2008 Dec 06 09:58 AM

[Stock Trade...:]

MSFT is trading at a 10 year low (without dividends factored in). If they miss earnings this quarter, look out below!

2008 Dec 06 10:28 AM