Seeking Alpha

Microsoft (ticker: MSFT) reported fiscal Q2 2006 earnings results today. Key stats:

  • Net revenue rose 9% y-o-y to $11.84 billion below consensus estimate of $11.96 billion.
  • Server and Tools revenue rose 14% y-o-y.
  • SQL Server revenue rose over 20% y-o-y.
  • Operating income fell 2% y-o-y to $4.66 billion.
  • Net income rose 5% y-o-y to $3.65 billion.
  • Diluted EPS was $0.34 (including $108 million or $0.01 from tax benefit) slightly above consensus estimate of $0.33.
  • FQ3 (CQ1) 2006 Guidance

  • Revenue of $10.9-11.2 billion (mid-point $11.1 billion) slightly above consensus estimate of $10.99 billion.
  • Operating income of $4.5 - $4.6 billion.
  • Diluted earnings per share of $0.32 or $0.33 in line with consensus estimate of $0.33.
  • FY 2006 Guidance (Year Ending June 30, 2006)

  • Revenue of $44.0 - $44.5 billion in line with consensus estimate of $44.21 billion.
  • Operating income of $17.9 - $18.3 billion (including $361 million for Q1 settlement charge).
  • Diluted earnings per share of $1.28 -$1.31 slightly below consensus estimate of $1.32.
  • Before the first-quarter legal settlement of $0.02 and the second quarter tax benefit of $0.01, diluted earnings per share are expected to be in the range of $1.29 - $1.32.
  • Full press release here.

    Source: Microsoft's EPS Narrowly Beats, Revenue Weak, Guidance In-Line (MSFT)