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Microsoft (MSFT): FQ3 EPS of $0.72 beats by $0.04. Revenue of $20.49B misses by $71M. Shares...

Microsoft (MSFT): FQ3 EPS of $0.72 beats by $0.04. Revenue of $20.49B misses by $71M. Shares +1.7% AH. (PR)
Comments (12)
  • also not as bad as I expected... with all the talk you would have thought INTC and MSFT were already in the graves...
    18 Apr 2013, 04:04 PM Reply Like
  • Yessss! (Fistpump)
    18 Apr 2013, 04:21 PM Reply Like
  • Your email alert service is not working right. It says earnings missed. But your sight says it beat.
    18 Apr 2013, 04:24 PM Reply Like
  • the message changed since it was first posted they probably made an error
    18 Apr 2013, 04:26 PM Reply Like
  • I don't think anyone was really expecting them to beat estimates. With CEO resigning and subpar results, MSFT should get some bearish action tomorrow.
    18 Apr 2013, 04:29 PM Reply Like
  • Ballmer is resigning?
    18 Apr 2013, 04:30 PM Reply Like
  • Sorry, I meant CFO*

     

    Also, I stand corrected. I thought it said EPS was a miss now it says it beat EPS. So MSFT seems to have delivered good results.
    18 Apr 2013, 04:39 PM Reply Like
  • You should *always* read the actual earnings report for yourself. Don't just trust the news sources.
    18 Apr 2013, 06:55 PM Reply Like
  • Wow. MSFT is a machine. PC decline may not affect them as much as INTC. Businesses can still upgrade their operating system without upgrading their machines. Same goes for office. Businesses can upgrade Office or buy more licenses withouth upgrading their machines. Also server software, cloud products, and even the Entertainment and Devices segment look like they are performing pretty well. Mobile success is definitely not a certainty but the company certainly has a chance to be the #3 operating system behind iOS and Android.

     

    The financial results are just incredible. Nearly $8.50 in net cash plus investments before a repatriation adjustment. That is just about 30% of the current market cap based on today's closing price. And the company is on pace to generate well over $3 of free cash flow per share, actually about $3.20 in FCF per share.

     

    Even if you adjust for repatriation (difference between MSFT's effective rate and the US Federal Statutory rate) there is still about $7 in net cash plus investments. Using a stock price around $29 and assuming $3.20 in FCF for fiscal 2013, puts the current price to FCF at less than 7. Is it a stretch to say based on the results and the firm's financial position that the stock is deserving of a higher multiple?
    18 Apr 2013, 04:31 PM Reply Like
  • Most people do not understand how MSFT books sales and/or profits. One headline came out awhile ago claiming x number of Windows 8 licenses were sold and the comments talked about channel stuffing and rotten inventory..... That makes no difference to MSFT, they make money regardless!

     

    The real thing people have been burying their heads in the sand about is OSD, the Online Services Division. I wrote about a year ago now, there was absolutely no way MSFT would continue to lose $2B a year in that business when GOOG had demonstrated how profitable online ads could be. All of the losses would eventually go away, MSFT knows how to make money.... Even with 20% of the market, they can turn a profit. If they come in flat, that is an additional $2B a year in operating income, even if everything else goes sideways (which it isn't)..... Fast forward to the earnings report today, OSD is not bleeding money like before. Expect to see Operating Income continue to advance, even in the face of slowing revenue......

     

    No analyst has mentioned this, and I'm not sure what they get paid to do. MSFT has 2 businesses generating an insane amount of cash with somewhat slow growth (Windows is a very slow grower, Business not so much). They have another fast growing business in S&T that appears to be taking share from ORCL and IBM. I don't care about E&D, no one really should. So in essence, the only thing worth modeling is what happens with OSD. If people think Bing will start to turn a profit (I do, and I now use it since I hate GOOG's privacy position), how in the world do you lose money in this investment?

     

    People seriously need to quit reading catchy headlines and focus on the facts........ MSFT is making tons of money and their margins are stable. Compare this to AAPL, who has a considerably riskier business model. It's easy to see why people struggle so much with investing. It's almost impossible to lose money on MSFT over time at any price under $28. It's just way, way too cheap.

     

    Good luck!
    18 Apr 2013, 05:47 PM Reply Like
  • Results beat consensus by 4 cents. Important point to me is that the company's diversified revenue base sets it apart from most other tech companies. The fact that industry wide PC sales were down as reported last week did not have a significant impact on overall operating results. Stock should rebound nicely tomorrow. Great long term stock for a value investor
    18 Apr 2013, 04:55 PM Reply Like
  • Microsoft 3Q earnings beat Street
    Microsoft third-quarter earnings beat Street, revenue jumps 18 percent!

     

    MSFT up over 2.4% in after hours. Kudos to Steve Balmer and his management team!
    18 Apr 2013, 05:02 PM Reply Like
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