Microsoft Misses Earnings Estimates

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Microsoft Misses Earnings Estimates

By: Nathan Weinberg
2006-04-28

Microsoft reported earnings Thursday, announcing third-quarter revenues of $10.9 billion, resulting inearnings per share of 31 cents.

Net income was just under $3 billion.

Links: earnings, announcement

Going division by division, the Home and Entertainment Division (Xbox) saw a $388 million loss, in spite of an 80% growth in sales. MSN lost $26 million, its first unprofitable quarter in a while, due to increased investment in the division. Mobile and Embedded Devices saw a $14 million loss, up five million from three months ago.

Todd Bishop reports:

The company also gave its first glimpse of expectations for the upcoming fiscal year, saying it's looking for revenue of $49.5 billion to $50.5 billion, which would represent slightly more than 13 percent growth, compared with the 11 percent growth that's expected for the current fiscal year.

Analysts had expected about four cents more earnings per share, which means that the stock is taking a hit in after-hours trading. MSFT is down $1.72, or 6.31%.

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View All Articles by Nathan Weinberg

About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

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