Microsoft Earnings Report Fiscal Q1 2011

[RobertR1]

Taken from Gaf;

** Microsoft's fiscal year starts on July 1st

2010 (2009)

Entertainment and Devices Division $382 ($260)
(Operating income)

Millions of dollars.

- Microsoft Corp. today announced record first-quarter revenue of $16.20 billion for the quarter ended Sept. 30, 2010, a 25% increase from the same period of the prior year.

- Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59%, 51% and 55%, respectively, when compared with the prior year period.

- Xbox 360 consoles grew 38%, outselling every competing console in the U.S. for each of the past four months.

- Microsoft shipped 2.8 million Xbox 360 consoles during the first quarter of fiscal year 2011, compared with 2.1 million Xbox 360 consoles during the first quarter of fiscal year 2010

- Total shipped: 44.5 million

 

[scently]

And yet people wonder why MS is spending $500m on Kinect. The Xbox business is a very important business in MS product portfolio.

And looking at the Xbox Live integration with WP7 (seriously the OS/phone experience is amazing), it is only going to get better.

 

[Rangers]

So ship numbers released so far

2.8 for 360
1.93 Wii

Both exactly reasonable and consistent with sales.

Sony: Early tomorrow morning USA time

I'M LOOKING AT YOU SONY, I BETTER NOT SEE A FAKE NUMBER.

Too put these numbers in perspective, I looked up Apple and Google (same quarter). Apple had revenue of 20.34 (first time more revenue than MS in ages, not a good sign for MS) but profit of 4.31. MS is still handily ahead of Apple in profits.

Google, 7.29 revenue and 2.17 profit.

Surprised to see Google relatively small there.

Funny how no matter much profit or even growth MS sees, Wall Street doesn't care, preferring to pump ever more dollars into darling Apple, which very soon will be the largest valued company in the world (only Exxon Mobil ahead right now).

 

[Nesh]

Funny how no matter much profit or even growth MS sees, Wall Street doesn't care, preferring to pump ever more dollars into darling Apple, which very soon will be the largest valued company in the world (only Exxon Mobil ahead right now).

I may be wrong but last time I checked MS's stock prices were very high, with more stable profitability. MS's growth has been kind of stable. So, most likely the future return you will be getting wont be significant relatively to a company with much more growth opportunities.
MS has been "monopolizing" in the market for a long time. Now competitors like Apple are gaining ground and investors are noticing that market shares are shifting. An investment now on a company like Apple may be a better choice for future return on investment if you dont care only about dividends but about buying and selling shares.

 

[NavNucST3]

I may be wrong but last time I checked MS's stock prices were very high, with more stable profitability. MS's growth has been kind of stable. So, most likely the future return you will be getting wont be significant relatively to a company with much more growth opportunities.
MS has been "monopolizing" in the market for a long time. Now competitors like Apple are gaining ground and investors are noticing that market shares are shifting. An investment now on a company like Apple may be a better choice for future return on investment if you dont care only about dividends but about buying and selling shares.

Lets put something in perspective here...

MSFT: 26.28
AAPL: 305.24
GOOG: 618.58

You are going to need a LOT of cash for AAPL and GOOG to make you significant money if you don't care about dividends and only buying and selling shares...a. lot.

 

[eastmen]

And yet people wonder why MS is spending $500m on Kinect. The Xbox business is a very important business in MS product portfolio.

And looking at the Xbox Live integration with WP7 (seriously the OS/phone experience is amazing), it is only going to get better.

I hate when someone quotes that $500m for kinect. Kinect is now being advertised hand in hand with the 360. There are no more 360 only ads. At the end of every game it shows the 360 with kinect and says it.

MS isn't stupid they are able to advertise the 360 , kinect and kinects games all in one and are able to advertise games like fable 3 while advertising kinect. Its a seemless plan and while the number sounds high and crazy its quite reasonable for a holiday advert across the globe.

 

[Nesh]

Lets put something in perspective here...

MSFT: 26.28
AAPL: 305.24
GOOG: 618.58

You are going to need a LOT of cash for AAPL and GOOG to make you significant money if you don't care about dividends and only buying and selling shares...a. lot.

Well....looks like the investors already responded to these prospects then

 

[Rangers]

Yeah the standard line on why MS stock is always stagnant is "theyre not a growth company". Yet I believe they just reported 25% year over year revenue increase which sounds like growth to me. But it wont have any effect on the stock as always.

 

[Nesh]

Yeah the standard line on why MS stock is always stagnant is "theyre not a growth company". Yet I believe they just reported 25% year over year revenue increase which sounds like growth to me. But it wont have any effect on the stock as always.

How much was the profit increase btw?

 

[AlphaWolf]

How much was the profit increase btw?

Shamelessly stolen from the AP report.

For the fiscal first quarter, which ended in September, Microsoft's net income rose 51 percent to $5.4 billion, or 62 cents per share, from $3.6 million, or 40 cents per share, in the same period last year.

In last year's quarter, Microsoft deferred some revenue from Windows sales. Had it not done so, net income would have been only 16 percent higher this year in comparison.

As for share price... Microsoft pays out dividends. Apple does not.

 

[MfA]

And yet people wonder why MS is spending $500m on Kinect. The Xbox business is a very important business in MS product portfolio.

It's one of the most dangerous and destructive parts of MS's product portfolio.

 

[Rangers]

It's one of the most dangerous and destructive parts of MS's product portfolio.

Eh? It's probably the only of MS many attempts to "break out" from just Windows/Office, that's actually had a decent level of success.

Especially here now if kinect takes off, which looks possible.

And if it's (by all indications, currently) profitable, for about the last three years. If Windows died tomorrow, MS could live on as the Xbox company

 

[DuckThor Evil]

Eh? It's probably the only of MS many attempts to "break out" from just Windows/Office, that's actually had a decent level of success.

Especially here now if kinect takes off, which looks possible.

And if it's (by all indications, currently) profitable, for about the last three years. If Windows died tomorrow, MS could live on as the Xbox company

MfA seem to think that the Xbox is dangering MS's Windows business and that they should mainly focus on windows instead, perhaps making Xbox a part of Windows or something like that.

 

[eastmen]

Sony is claiming 41.6m units sold in their earnings report. Wonder how true it is ( I know the number is real , i just wonder if its shiped to stores are sitting in warehouses some where)

 

[Rangers]

Sony is claiming 41.6m units sold in their earnings report. Wonder how true it is ( I know the number is real , i just wonder if its shiped to stores are sitting in warehouses some where)

Sigh, I wish somebody would make that thread because I'm REALLY struggling to understand that number.

 

[MfA]

MfA seem to think that the Xbox is dangering MS's Windows business

It's not the Xbox perse, it's Apple ... mind share is important, Linux is killing them in the server market and mind share definitely helped there. If they allow Apple to grow even larger in colleges (already own over a quarter of laptop sales, more than Dell) it's going to come back to haunt them. Games are a big part of that.

Gaming with OS X is one of the areas where Apple has just failed harder than Microsoft fails with gaming for Windows ... but relying on your competitor to fail harder to keep a competitive edge is dangerous.

If they do buy EA I think Microsoft is in deep shit.

 

[Weaste]

So, if...

Xbox 360 platform (which includes the Xbox 360 gaming and entertainment console, Xbox 360 video games, Xbox LIVE, and Xbox 360 accessories, including Kinect for Xbox 360 launching in November 2010)

increased its revenue by $409m, then...

Zune digital music and entertainment platform, PC game software, online games and services, Mediaroom (our Internet protocol television software), and Windows Phone.

ate $26m of that to give a figure of a $383m increase for the EDD as a whole? That's not as bad as I expected.

 

[eastmen]

Kinect looks to be big.

http://www.techradar.com/news/gaming/kinect-predicted-to-rule-christmas-in-uk-903938

Oprah bumped it pretty high

The standalone Kinect hardware saw a jump of 42% PO.* It now sits at #7 in the Amazon charts for all video game sales.
The Kinect will also be released in two separate hardware bundles. The version with the 4GB console jumped 67%. However, demand for that particular version is low - even after the PO jump, it only hit #100 on the sales charts.
The 250 GB version of the console bundle, however, is clearly in higher demand. After a sales increase of 43%, it hit #43 on the charts.
We have predicted on several occasions that the Kinect won't be much of a hit. Perhaps now it will be. Because Oprah commands it.

And yesterday Before Michelle Obama apeared on Ellen, Ellen played dance central and gave away the system to everyone in the audiance. So it will most likely get another solid bump from that

 

[Rolf N]

Lets put something in perspective here...

MSFT: 26.28
AAPL: 305.24
GOOG: 618.58

You are going to need a LOT of cash for AAPL and GOOG to make you significant money if you don't care about dividends and only buying and selling shares...a. lot.

Is the absolute share price significant at all? I mean the number of shares issued can be completely different for every company. Market capitalization is the measure you're looking for, not price per share.

 

[AlphaWolf]

Is the absolute share price significant at all? I mean the number of shares issued can be completely different for every company. Market capitalization is the measure you're looking for, not price per share.

Absolute share price certainly matters if you want to buy in. You'd need more than $60k to directly invest in google.