Microsoft Beats, But Leaves Little New (MSFT)

Microsoft Corporation (NASDAQ: MSFT) has just reported earnings of $0.74 on the headline and $0.60 EPS for non-GAAP earnings and $19.02 billion in revenues.  The estimates from Thomson Reuters were $0.59 EPS and $17.84 billion in revenues.  The reason for the discrepancy on the surface was $0.14 items on Windows 7 deferred revenues.

As far as guidance, the company developed alligator arms because it isn’t reaching out with guidance besides “we’ll give that in the conference call.”  Microsoft offers operating expense guidance of $26.2 billion to $26.5 billion, for the full year ending June 30, 2010.  When it gives guidance, estimates for the current quarter are $0.44 EPS and $14.56 billion in revenues and for the year those estimates are $1.85 EPS and $60.21 billion in revenues.

The Windows and Windows Live revenues were $6.9 billion, the servers and tools revenue was $3.84 billion, and business revenues were $4.75 billion.  Entertainment and device revenues were $2.9 billion.

Microsoft had a high bar set for it and shares closed down 1.7% at $29.16 today.  So far, shares are trading at $29.00 in the after-hours session. There is nothing awful in the report.  There is also nothing just stellar.

JON C. OGG