Microsoft posts record breaking revenues, impresses analysts

Microsoft announced today that their revenue for this quarter has broken records and beaten analyst predictions, according to Engadget, coming in at a smooth $16.2 billion. $5.41 billion of that was profit. The great financial news, according to Microsoft, is a consequence of the successful retail run of Office 2010, increased PC sales, and 38% growth in the Xbox department.

Microsoft seems to be on quite the roll lately. With Windows 7 becoming the most sold operating system in computing history, and Office 2010 sales increasing the already impressive presence of the Office productivity ecosystem in the consumer and enterprise worlds, it’s no wonder that the company is doing so well right now. Add to that the upcoming US launch of Windows Phone 7, already critically acclaimed and lauded by reviewers, and the inevitable holiday sales rush of the Xbox 360 Kinect, and you’ve got optimistic analysts across the board.

Microsoft will host an earnings call later this evening (5:30 PM EDT) to formally announce and discuss the numbers, and I’m sure the call will be generally jovial and full of stockholders’ smiles. 

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What I find amusing is that all the people here are talking like it's their company that's doing well!!? That said it is not a bad thing when companies do well, after all that is what their obvious goal is! My issue is, that when the world is still in recession and unemployment is at an all time high, these companies are ripping the consumer off left, right and center! Billions and billions of $ profit and no real relief for the hard pressed consumer! For 1st world countries and consumers it's hard enough but for the struggling economies/countries, it is far worse! They are busy collapsing under the weight of the financial burden these giant companies place on them! A strong, prosperous world is a better place than just the few who have everything! As time goes on, the imbalance get worse and worse!

Farstrider said,
What I find amusing is that all the people here are talking like it's their company that's doing well!!?

MS has actually done really well at growing and sustaining its employee numbers.. in fact, some analysts hold it against them how big they are. The tech sector isn't the industry plagued with job issues either. While its difficult across the board, its the manufacturing/construction/new housing and "blue collar" jobs that really got ripped up and thrown away.

Seeing as that i'm looking for a Job, redmond has a lot of open positions right now!

Farstrider said,
What I find amusing is that all the people here are talking like it's their company that's doing well!!? That said it is not a bad thing when companies do well, after all that is what their obvious goal is! My issue is, that when the world is still in recession and unemployment is at an all time high, these companies are ripping the consumer off left, right and center! Billions and billions of $ profit and no real relief for the hard pressed consumer! For 1st world countries and consumers it's hard enough but for the struggling economies/countries, it is far worse! They are busy collapsing under the weight of the financial burden these giant companies place on them! A strong, prosperous world is a better place than just the few who have everything! As time goes on, the imbalance get worse and worse!


That is really something to think about!

I like when companies do well, not only Microsoft but also Apple, Google, Adobe, etc... But I'm veeery happy to see this news after reading some non sense negative articles about Microsoft

daniel_rh said,
I like when companies do well, not only Microsoft but also Apple, Google, Adobe, etc... But I'm veeery happy to see this news after reading some non sense negative articles about Microsoft

+1

Tpiom said,
Microsoft is dying. Last year they had a HUGE fall:e.

They took some losses but mostly set themselves up for some nice future gains. Re-investment in Phone, Xbox, Office, Windows and Bing was expensive however it was smart. MS is cash rich and they sat around for a while on that pile of cash and it bit their butt. It looks like they're starting to re-invest and grow their market once again. Far from dying. You want "dying" companies look at the staff augmentation and off shoring sector.. all those giants that sold themselves out of a job

I think apple might wanna buy microsoft... queue baseless article in 3-2-1. but be sure to make it about phones like every other article on the front page these days.

Kinect, Office 2010 AND 2011 (Mac), the all round excellent Windows 7 and Windows 7 phone and even Bing on multiple devices (including that of Apple). I think MS is doing quite well for themselves post Vista/Gates era.

MS may not be so great with their brand awareness but sales speaks for itself.

"...and I'm sure the call will be generally jovial and full of stockholders' smiles"

You have to listen to these calls. It's always... geez you made record profits for a non-holiday quarter, but we really wish you beat our estimates by even more. lol

Sweet! A strong Microsoft and a strong Apple is good for consumers. They've both raised the bar and put out some great products the last few years.

COKid said,
Sweet! A strong Microsoft and a strong Apple is good for consumers. They've both raised the bar and put out some great products the last few years.

Agreed. I love my Windows 7, my iPhone 4, and various google stuff. Why hate when you can enjoy all the different companies' products?

J_R_G said,

Agreed. I love my Windows 7, my iPhone 4, and various google stuff. Why hate when you can enjoy all the different companies' products?

This sane opinion is surprisingly uncommon, or at least it looks like it.

J_R_G said,

Why hate when you can enjoy all the different companies' products?

Wow! Say that again. I don't think enough people heard you. Finally someone understands.

J_R_G said,

Agreed. I love my Windows 7, my iPhone 4, and various google stuff. Why hate when you can enjoy all the different companies' products?


That's what I'm talking about dude.

Northgrove said,
This sane opinion is surprisingly uncommon, or at least it looks like it.

+1 Sobering opinion, in these times of fan boyism

And yet the stock price didn't climb much at all... I think more than anything, that's what stockholders want (As a stockholder myself)... The stock has dipped considerably in the past several months...

M_Lyons10 said,
And yet the stock price didn't climb much at all... I think more than anything, that's what stockholders want (As a stockholder myself)... The stock has dipped considerably in the past several months...

But stock price isn't everything. If you buy stocks for the dividends, MS is a pretty solid contender in that area. If you buy stocks for growth, well then another may be more suitable for you.

As of today, MSFT is 26.28 and, say, AAPL is 305.24
Now MSFT's EPS is $2.10 and AAPL is $15.15

So for one Apple share, you could buy 11 Microsoft shares and you would be earning $7 more. of course there are other factors to take into account and this is a very simple view but it really comes down to what do you want from your investments. If that's growth and all you're interested in is tech stocks you would go Apple or Google. If you want stability and dividends, you would go Microsoft.

Edited by -Razorfold, Oct 28 2010, 9:45pm :

M_Lyons10 said,
And yet the stock price didn't climb much at all... I think more than anything, that's what stockholders want (As a stockholder myself)... The stock has dipped considerably in the past several months...

True. But the comparison is always to goog/aapl and not always compared to IBM/Oracle et al.
Right now Google and Apple are teh latest sensations and MS if considered the "mature dinasaur" yet these folks don't compare them to the other companies they call the same. (I'm thinking GE, MMM, IBM)

Why is this importnant? Because, despite being old, crappy, dying etc, they have nearly doubled their profits in the last 10 years. That's still impressive. They also have increased dividends on a regular basis since they began thus shareholders received value unlike the new upstart minded Googs and Aapls. Also, how many companies have founders that are shedding millions of shares every other week to fund a major philanthropic venture to help the world? Though all for a good cause, it does counter to some degree MS efforts to buy back shares. (I'm happy the Gates Foundation exists despite this)

MS has made billions of dollars and have earned the right to burn cash to build more billion dollar businesses. They'll fail and succeed. They were told to give up in console gaming 10 years ago.

Today's announcement only demonstrates that MSFT is #notdeadyet

I think this announcement was after wallstreet closed... wait for tomorrow was same with google a ~week ago... stock prices +75$ over night.

SoLoR1 said,
I think this announcement was after wallstreet closed... wait for tomorrow was same with google a ~week ago... stock prices +75$ over night.

Well after hours, Microsoft is doing pretty well. Up 3.08% so far to put them at $27.09

Wall Street tries very hard not to care about MSFT, but maybe the waves of good news are getting more difficult for them to ignore.

FMH said,
Did they mention anything about WP7 sales?

WP7 is released only 1 week ago, don't exepect to have great impact on the revenue very earlier.

sysvenkat said,

WP7 is released only 1 week ago, don't exepect to have great impact on the revenue very earlier.

The quarter ends in September, WP7 was released in October.

AtriusNY said,

The quarter ends in September, WP7 was released in October.

Microsoft isn't going to make much from WP7. All they sell is the WP7 OS which costs $10-20 to the OEM/Carrier. Assuming the price of WP7 is $15, MS would have to sell ~67 million WP7 copies to get a $1bn revenue. So don't expect much from WP7.

Jebadiah said,
Microsoft isn't going to make much from WP7. All they sell is the WP7 OS which costs $10-20 to the OEM/Carrier. Assuming the price of WP7 is $15, MS would have to sell ~67 million WP7 copies to get a $1bn revenue. So don't expect much from WP7.

You forget the revenue split on the marketplace per apps, MS gets a chunk from there as well. I get you want to bust the good news bubble here, but seriously MS isn't hardly close to any corner like you may think.

techbeck said,
Yea, and there are articles about how MS is dying...whatever....
Huh? If you look at the overall competition, mainly from Google and Apple, MS is in a pretty bad place, even with WP7 which can only work on a phone. They have been working hard to not get pushed into a corner though.

techbeck said,
Yea, and there are articles about how MS is dying...whatever....

Not growing = dying in business terms. Of course with the size of MS, growth will always be slow.