Microsoft Posts Profit Gain, But Warns Of Tough Times Ahead

Microsoft joined the earnings parade yesterday and reported that they posted a net profit of $4.37-billion (U.S.), or 48 cents per diluted share, in the quarter ended Sept. 30, against a profit of $4.29-billion, or 45 cents, a year-ago. That was on revenues of $15.06 billion. That helped Microsoft stock gain 5% in after hours trading yesterday.

However the company lowered its full-year earnings forecasts to account for a toughening economy. Just like Apple did earlier this week.

Microsoft forecast earnings to range between $2 to $2.10 per share on revenue from $64.9-billion to $66.4-billion. Microsoft’s previous estimates called for earnings range from $2.12 to $2.18 per share and revenue ranging from $67.3-billion. Though they did say this:

[Microsoft CFO Chris] Liddell noted that “we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well.”

The street will be watching their performance.

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