Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (43040)	4/23/2000 9:27:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 74651

Microsoft Earnings Up 24 Percent By MICHAEL J. MARTINEZ AP Business Writer SEATTLE (AP) ? Microsoft Corp. warned of flat sales and earnings in the fourth quarter after reporting a 24 percent increase in third-quarter profits ? solid gains for any other company, but disappointing for the software giant. Chief financial officer John Connor said the fourth quarter of 1999 would be ``a tough act to follow.' Although Microsoft is usually conservative when it comes to its earnings forecasts, this is the first time the company has bluntly predicted no growth. ``We have to be cautious,' said Connor, who took over for outgoing CFO Greg Maffei in January. ``With the introduction of Office 2000 in the fourth quarter last year, along with questions over PC demand, it will be a tough quarter, sequentially.' Connors said revenues in the fourth quarter will be about $5.76 billion, which is what Microsoft reported last summer. He added that earnings per share would be about 41 cents, up just one cent from the year-ago period and lower than the 43 cents that analysts had been projecting. Goldman, Sachs & Co. analyst Rick Sherlund said the demand for business PCs seemed to be recovering, but still knocked $100 million off his revenue estimates for Microsoft's fourth quarter. ``I'd say it's definitely a weaker quarter than many of us thought,' Sherlund said. Microsoft said Thursday that it made $2.39 billion, or 43 cents per share, on sales of $5.66 billion ? a 23 percent increase in revenues ? in the three months ended March 31. In the same period a year ago, the company made $1.92 billion, or 35 cents per share, on revenues of $4.6 billion. The results squeaked by analysts' expectations of 41 cents per share, as reported by First Call/Thomson Financial, but did not impress Wall Street. ``This is pretty weak,' said J.P. Morgan analyst William Epifanio. ``I expected much higher sales than this, even with the Y2K bug effects in the last quarter.' Epifanio and other analysts say the new Windows 2000 operating system, designed for corporate networks and work stations, will help boost sales in the company's fiscal year 2001, which starts July 1. Windows 2000 was introduced Feb. 17, though most corporations who might purchase it will take their time in testing and installing the new software. Microsoft shares were hit hard this month after a federal judge's antitrust ruling against the company on April 3. U.S. District Judge Thomas Penfield Jackson ruled that Microsoft violated antitrust law by illegally using its monopoly power. The case stems from a lawsuit filed by the Justice Department and 19 states. Since March 31, when the stock closed at $106.25, Microsoft has plummeted more than 25 percent, contributing to a major market selloff and investor uncertainty that continues to linger. For the first three quarters of the year, Microsoft earned $7 billion, or $1.27 per share, on revenues of $17.2 billion. Last year, Microsoft had net earnings of $5.6 billion, or $1.02 per share, on sales of $14 billion.

To: John F. Dowd who wrote (43040)	4/23/2000 10:34:00 PM
From: Captain Jack	Read Replies (2) \| Respond to of 74651

John-- If you think that minor newspaper is slanted Anti MSFT where do you the TheStreet.com will be since they are 10K shares short? BTW they have 3 articles today about msft,,, LOL! Now-- if anything should be illeagle,, LOLOLOLO

To: John F. Dowd who wrote (43040)	4/24/2000 7:23:00 AM
From: John Carragher	Respond to of 74651

cnbc mentions all the papers this morning are printing gov wants breakup into three companies. wsj, wash post , nyt.down 7 pre market.

To: John F. Dowd who wrote (43040)	4/24/2000 9:24:00 AM
From: techtonicbull	Read Replies (1) \| Respond to of 74651

John Dowd: This is a very rare occurrance that MSFT has had a quarter that missed estimates as well as guided the street lower in future earnings. They reported that it is their business software that will not live up to their expectations. 12 month estimates for MSFT stock have been lowered to $85 per share, but it will take a wild ride to get back to that point IMO. I feel bad for the longs here and hope that you are not on margin.