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Strategies & Market Trends : Groundhog Day -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (1683)	4/18/2002 5:45:11 PM
From: Jorj X Mckie	Respond to of 6346

17:35 ET MSFT Microsoft Mar qtr wrap (56.37 -0.26) -- Update -- More on the Mar qtr EPS: it appears that none of the previous explanations we have heard is correct; at least two previews of the quarter we saw noted that the $0.51 estimates included an expected $0.10 gain from Expedia (it ultimately was $0.15) but made no mention of the $0.14 charge. We can therefore assume that the $0.51 consensus would have been $0.41 excluding the gain. That number is comparable to the $0.48 operating figure which excludes both the gain and charge. MSFT indeed noted that they beat their operating earnings expectations. Though MSFT clearly missed the revenue estimate, cost control appears to have resulted in a positive operating earnings surprise. Of course, the downward guidance for FY03 may ultimately take precedence over the Mar qtr figures, but the Mar operating numbers do look better than first thought.