The two “thud” sounds that you heard yesterday after the market closed were Microsoft and Google delivering less than stellar earnings results. Let’s start with Microsoft:
The company reported fourth-quarter earnings of $4.97 billion, or 59 cents a share, on revenue of $19.9 billion. The results include a $900 million inventory write-down for Surface RT that amounts to 7 cents a share.
Wall Street was expecting Microsoft to report fourth-quarter earnings of 75 cents a share on revenue of $20.73 billion. For the year, Microsoft reported earnings of $2.58 a share on revenue of $77.85 billion.
Only making 59 cents a share when the street was expecting 75 is not just a miss, it’s a miss of epic proportions. No wonder Microsoft stock is down over 9% as I type this. An the fact that they had to take a 7 cent a share write down on Surface RT inventory proves that nobody wants their tablets. This “devices and services” company thing that they’re now going to better work.
Now onto Google:
Google said its net income for the second quarter was $3.23 billion, compared to $2.79 billion in the second quarter of 2012. Q2 ended on June 30. The company’s earnings per share was $9.71, which is down from last year’s $10.13. The $14.11 in revenue missed Wall Street’s expectations of $14.41 billion and $10.78 a share.
Google too is having it’s stock punished by Wall Street down just over 3% as I type this. That doesn’t sound like a lot, but when your stock is $880 a share, that’s not a small number. So much for the talk that Google was going to hit $1000 a share this year.
So, as earnings season begins, do you expect to see other tech companies share this fate? Post a comment and share your thoughts.
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This entry was posted on July 19, 2013 at 9:43 am and is filed under Commentary with tags Google, Microsoft. You can follow any responses to this entry through the RSS 2.0 feed.
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Google And Microsoft Fail To Wow Investors
The two “thud” sounds that you heard yesterday after the market closed were Microsoft and Google delivering less than stellar earnings results. Let’s start with Microsoft:
The company reported fourth-quarter earnings of $4.97 billion, or 59 cents a share, on revenue of $19.9 billion. The results include a $900 million inventory write-down for Surface RT that amounts to 7 cents a share.
Wall Street was expecting Microsoft to report fourth-quarter earnings of 75 cents a share on revenue of $20.73 billion. For the year, Microsoft reported earnings of $2.58 a share on revenue of $77.85 billion.
Only making 59 cents a share when the street was expecting 75 is not just a miss, it’s a miss of epic proportions. No wonder Microsoft stock is down over 9% as I type this. An the fact that they had to take a 7 cent a share write down on Surface RT inventory proves that nobody wants their tablets. This “devices and services” company thing that they’re now going to better work.
Now onto Google:
Google said its net income for the second quarter was $3.23 billion, compared to $2.79 billion in the second quarter of 2012. Q2 ended on June 30. The company’s earnings per share was $9.71, which is down from last year’s $10.13. The $14.11 in revenue missed Wall Street’s expectations of $14.41 billion and $10.78 a share.
Google too is having it’s stock punished by Wall Street down just over 3% as I type this. That doesn’t sound like a lot, but when your stock is $880 a share, that’s not a small number. So much for the talk that Google was going to hit $1000 a share this year.
So, as earnings season begins, do you expect to see other tech companies share this fate? Post a comment and share your thoughts.
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This entry was posted on July 19, 2013 at 9:43 am and is filed under Commentary with tags Google, Microsoft. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.