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Strong Quarter at Microsoft; Upbeat ’08 Outlook

     
5:43 pm on Apr 27, 2007 (gmt 0)

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Microsoft reported quarterly sales and profits that surpassed Wall Street’s expectations yesterday, suggesting that early sales of its new Windows Vista operating system were off to a solid start.

The company, which is the world’s largest software maker, also delivered an outlook for its 2008 fiscal year, which begins in July, in the upper range of analysts’ projections. Microsoft said that revenue in fiscal 2008 should reach $56.5 billion to $57.5 billion, and earnings were expected to be $1.68 to $1.72 a share....

...Microsoft’s online services business remained a problem. Revenue in that division rose 11 percent, to $623 million, and losses rose sharply, to $200 million.

Strong Quarter at Microsoft, and an Upbeat ’08 Outlook, Bring Wall St. a Sigh of Relief [nytimes.com]

7:40 pm on Apr 27, 2007 (gmt 0)

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Imagine what they could do if they could figure out search. I'm holding onto my stock for a bit longer.
8:21 pm on Apr 27, 2007 (gmt 0)

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they also bought close to $7 billion back in stock thsi quarter...leaving "only" $27 billion in bank. MSFT is a cash machine
12:27 am on Apr 28, 2007 (gmt 0)

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they also bought close to $7 billion back

I am not too sure about shares in general, I have a quick question - why does any company buy back shares?

RJ

12:40 am on Apr 28, 2007 (gmt 0)

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Microsoft also has no debt...
12:40 am on Apr 28, 2007 (gmt 0)

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Buying back shares is a way of giving shareholders value without distributing cash.

When a company buys back its own shares, it retires them (takes them out of the pool of ownership). That means each remaining share now owns a slightly bigger piece of the company. The companies overall value declines slightly (by the amount of cash used for the buyback), but overall each shareholder's value is increased.

Generally when a company does a buy back it is because they feel their stock is undervalued or they can't do anything with the cash that would return better than just giving it back to the shareholder.

Shareholder's like it because it increases their share value without a taxable event to them (such as a distribution would have).

12:53 am on Apr 28, 2007 (gmt 0)

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stajer,
correct me if I am wrong, but also the value increases via upply and demand (less shares on the market so if you want them...)

Also, I think, the dividend increses since the same amount will be divided among less shares.

12:56 am on Apr 28, 2007 (gmt 0)

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Yes, walkman you are right on both counts.

[this is my 200th post!]

12:59 am on Apr 28, 2007 (gmt 0)

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Ok, wait.... this is my 200th post.

[And perhaps my most informative.]

1:00 am on Apr 28, 2007 (gmt 0)

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Hmmm... I am beginning to sense that post in FOO don't count to your post count. I will be a Junior User forever!
2:27 am on Apr 28, 2007 (gmt 0)

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Neither Foo nor Community posts count (and maybe some others, but the formula is too complex to explain :)).
9:38 am on May 1, 2007 (gmt 0)

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What's that, you say?

Microsoft Outlook '08 was released today?

*fires starting pistol into the air*

Let the misinterpretation begin!

*dodges falling bullet*