In a new research note this morning, Goldman Sachs has reacted to the negative news on the recall and warranty charges on Microsoft’s (MSFT-NASDAQ) Xbox 360. This is after the company announced it would have a $1.05 to $1.15 Billion charge and if you do the math on the costs this could come out to half of the units that have already been sold. Supposedly this is not a design issue and is not affecting the currently built machines. Goldman Sachs has lowered FY2007 EPS to $1.41 from $1.49 and lowered FY2008 EPS from $1.70 to $1.69,although it has maintained the 2009 estimates. Microsoft was maintained as Buy at Goldman.
In a separate note, D.A. Davidson maintained a neutral rating on Microsoft, and trimmed FY2007 EPS to $1.49 from $1.50.
Based on the differences of the timings, it looks like the differences from firm to firm are going to be in the timing of the charges.
Jon C. Ogg
July 6, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.