Microsoft Joins Google In Missing The Street

Microsoft posted a 29 per cent rise in quarterly profit Thursday, but the company issued a forecast below Wall Street expectations for the current quarter and cited difficult economic conditions. Net profit was $4.3-billion, or 46 cents per diluted share, in its fiscal fourth quarter ended June versus a profit of $3.04-billion, or 31 cents per diluted share, in the year-ago period. Wall Street was looking for 47 cents per share. Microsoft then lowered its full-year estimates to an earnings range of $2.12 to $2.18 per share on revenue from $67.3-billion to $68.1-billion. Both of those sent shares down 5% in after hours trading.

Of note, demand for Windows 2008 Server and Vista (???) helped Microsoft make money last quarter. Interesting. That means that somebody (likely OEMs) wants Vista. But Xbox warranty repairs due to the “red ring of death” issue helped to take some of the steam out of their earnings.

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