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Microsoft Crushes Estimates, Stock Takes Off

Posted Oct 23, 2009 11:48am EDT by Jay Yarow in Investing, Internet, Products and Trends, Recession

From The Business Insider, Oct. 23, 2009:

Microsoft delivered a solid third quarter. The stock is up 7% in the pre-market.

EPS of $0.40 fell 17%, but beat Street estimates of $0.32 EPS.

Revenue was $12.92 billion, a 14% drop from a year ago, but it beat estimates of $12.32 billion.

Microsoft's web properties continue to sputter. Online services division revenue is $490 million versus $520 million a year ago. The operating loss on Online services is $480 million versus a $321 million loss a year ago.

The Entertaiment and Devices Division had $1.9 billion in revenue, which is flat year over year. The operating income for the division soared to $312 million from $159 million a year ago.

Here's the numbers

More coverage from The Business Insider

31 Comments

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 11:56AM EDT

Were the earnings really that good or were the Street estimates wrong again? Makes one wonder whether the estimates are deliberately low across the board to create the perception of a V shaped bottom.

Andrew
Andrew - Friday October 23, 2009 12:04PM EDT

Just follow the trend like the pros: www.originalturtletrader.com

ezshooter
ezshooter - Friday October 23, 2009 12:05PM EDT

As long as you do stink as much as everyone thought you would---you are now a winner. The new rules are hard to follow.

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 12:07PM EDT

The disconnect between stock market and our current state of economy is easy to figure out. Bank institutions using government bailout money to manipulate stocket market in order to make profit. Stock market is only current income that they can make with current state of economy which low consumer spending, raise in unemployment, and bad in housing market. Without stock market income sources, bank institutions will be in big trouble with current state of economy. I also believe stock market will truely and logically rally if and only if when most companies release with positive earnings and sales. At present, some companies make modest positive earnings and sales, some lost in sales and earnings. This indicates economy still in bad shape. As my comment in other post a month ago regarding the high unemployment and low consumer spending will make a major impact on earnings of the majority of companies/corporations. Companies will make better earnings until those problems are resolved. IN SUMARY, ONLY POSITIVE EARNING FROM A FEW COMPANIES SUCH AS MICROSOFT,.. WILL NOT PROVE MUCH ABOUT THE ECONOMY IS RECOVERING. IT'S STILL IN BAD SHAPE

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 12:12PM EDT

The disconnect between stock market and our current state of economy is easy to figure out. Bank institutions using government bailout money to manipulate stocket market in order to make profit. Stock market is only current income that they can make with current state of economy which low consumer spending, raise in unemployment, and bad in housing market. Without stock market income sources, bank institution will be in big trouble with current state of economy. I also believe stock market will truely and logically rally if and only if when most companies release with positive earnings and sales. At present, some companies make modest positive earnings and sales, some lost in sales and earnings. This indicates economy still in bad shape. As my comment in other post a month ago regarding the high unemployment and low consumer spending will make a major impact on earnings of the majority of companies/corporations. Companies will make better earnings until those problems are resolved. ONLY A FEW COMPANIES POST POSITIVE EARNING STILL NOT PROVE THAT ECONOMY IS RECOVERING. IT'S STILL IN BAD SHAPE.

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 12:24PM EDT

A well designed suckers rally produces good news. Sheepulls buy the good news while the market slowly falls. Then, one day, the sheepulls ask "why did the market go down? everything was so good?" lol

Anthony
Anthony - Friday October 23, 2009 01:16PM EDT

I'm asking, why did the market go up this far, this fast, when everything is so bad?

yattaboy
yattaboy - Friday October 23, 2009 01:20PM EDT

Ballmer's picture alone will drive 10,000 people to OSX.

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 01:23PM EDT

" I know I suck, BUT HAY! I suck less than people thought I did! YEEPE!!!" I can by that. If a building falls and you only get hit in the head with a brick instede of being in the building, thats not that bad!

donfurio
donfurio - Friday October 23, 2009 02:41PM EDT

I'm asking, why did the market go up this far, this fast, when everything is so bad? -because the market went to a level that it probably never should have, but you had tons of idiots trying to say that we should nationalize the banks. That would have crippled our economy and obviously the equity in many sectors, especially financials. If you say instead that the Dow should have gone down 40% which can happen in a severe recession, you get to DOW 8520, which would mean we are only about 20% of where the bottom may have been if there wasn't a panic. Also, it varies where you live/your current situation. If you live in Michigan and you are one of the 15% - 25% of people unemployed, obviously things are tough. With the pool of employed people will still have nationally, at some point people will be making tough decisions. Some families that used to have 2 people work, they may one have 1 work and cut costs to make it work, some people will physically move, some people will retire, etc. Some of the decisions have been made, but some have not yet since some people could be on unemployment for over a year before they have to make the tough choices. Also, everyone says that 70% of economy is consumer, which is partially true, but not all of that is discretionary. There are a larger % of people unemployed that are not educated and / or unskilled, so on a % of spending per person, it hurts but not as much as if it were mostly high earners being unemployed.

Leo
Leo - Friday October 23, 2009 02:43PM EDT

Hey, Ballmer...what's with the Gene Simmons impersonation???

Ronnie X
Ronnie X - Friday October 23, 2009 02:58PM EDT

That picture of Ballmer is digusting. Of course, disgusting is always a pretty short trip for Ballmer. Check this out: http://video.google.com/videoplay?docid=1274983729713522403# It's still my favorite video of a CEO making an ass of himself. And when he hurts his knee and yelps I still fall out of my chair.

Ronnie X
Ronnie X - Friday October 23, 2009 03:03PM EDT

Balmer is the biggest bozo CEO on Earth. He was on NBR last night, selling MS present and future releases as though he was trying to close the fat ass reporter on a used Cadillac (the young big fat guy, as opposed to the old big fat guy, Paul Kang-ass). Balmer is more conceerned as to whether he owns the biggest yacht in the world than whether the shit he sells us actually works as advertised. In my personal experience with PCs (I'm on my 5th since '94) and my experience as a retail software vendor apologizing for MS arrogance to my customers, my experience with Microsoft has been a very long case of "the shitz." Walt Mossberg recently published a report about what a nightmare it's going to be for Windows XP users (me) to get to Winows 7. The word migration does not apply here. You're basically starting over again, and if you happen not to have the CD for one of those very expensive MS apps you bought some time ago, well f*ck you. In typical MS form they hope a new OS will make loyal customers REPURCHASE apps they already own. Therefore, when I can no longer get this XP machine to serve me, I'll purchase my first Apple computer.

Ronnie X
Ronnie X - Friday October 23, 2009 03:25PM EDT

If Ballmer's tongue could talk I'll bet we really wouldn't want to hear where it has been.

andy r
andy r - Friday October 23, 2009 03:57PM EDT

Pay attention to the fundamentals. It's a big world, China is growing. This stock is dirt cheap has a good balance sheet and is not gonna sink in an ailing american economy. http://finance.yahoo.com/q?s=CCTR.OB

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 05:23PM EDT

He looks like he's drunk and leering at pornography.

Dan
Dan - Friday October 23, 2009 06:06PM EDT

will MSFT go up more next week?

player105 stock
player105 stock - Friday October 23, 2009 06:12PM EDT

You people on this site crack me up.....almost $13 bil. in revenue in one freaggin quarter, and most of ya are still talking about how bad things are, doom and gloom, manipulations, and scandals. Did any of you ever think that the biggest scandal, and manipulation of all was the fabricated so called crisis, and recession????? Who's the suckas now.....SUCKA!!!!!!

Yahoo! Finance User
Yahoo! Finance User - Friday October 23, 2009 06:13PM EDT

Microsuck did not gain in revenue in this quarter other than using the method of cost cut in oder to beat expectation. That means Microsuck still have problem with sale and finding new customers. Since low consumer spending in current state of economy, Microsuck still definitely strugling with sale/revenue. Plus, Microsuck does not has diversity of products and services other than Win OS and its accessories. It seems still a sucker rally for Microsuck. I am more interested in Microsuck sale and revenue than just cutting operation cost to beat expectation.

player105 stock
player105 stock - Friday October 23, 2009 06:14PM EDT

Oh, and they (MSFT) just so happen to have another $20 bil. in cash laying around. Oh yeah, what a crisis to have eh?????

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