Wednesday, October 17, 2012

Microsoft Corporation (NASDAQ:MSFT) to report weak first quarter earnings Tomorrow

The world's largest software company, Microsoft Corporation(NASDAQ:MSFT) is seen reporting weak quarterly earnings when it announces its results for the September quarter on Thursday.

Analysts expect Microsoft to report adjusted earnings of 61 cents per share. For the quarter ending in June Microsoft had reported its first loss ever as it had to write down the value of its Internet advertising firm aQuantive.

Analysts are expecting a profit in the fiscal first quarter, but revenues that would be lower than what was reported in the March 2011 quarter.

According to reports, analysts are split on whether they are factoring in the deferral of revenues from Windows 7 and Office 2013, and the average earnings forecast may not match up well with real expectations.

How Should Investors Trade MSFT Ahead of Earnings? Find Out Here

For instance, Nomura Securities has said that it expects earnings of 50 cents per share, excluding deferred revenues.

Revenues are expected to be at about $16.5 billion, according to analysts.

Microsoft has been hit during the quarter by a dip in the sales of personal computers that run on its operating system. PC sales fell more than 8 percent worldwide, partly due to lack of demand and partly because customers have deferred purchases waiting for the launch of the Windows 8 operating software. It is expected to be launched on October 26, along with its new Windows Phone 8 for mobiles.

More than its new operating system, Microsoft is now concentrating its energies on the launch of its new tablet C Surface which will be running on its new operating system for mobiles.

In the first quarter of the year-ago period Microsoft had earned 68 cents on revenues of $17.4 billion.

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