Ivy Lessner
SAN FRANCISCO -- Despite disappointing investors with its fourth-quarter profit and first-quarter forecast, Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks) said Thursday it expects a solid fiscal 2009.
Microsoft's full-year guidance was in line with consensus estimates, based upon expectations for strong PC and software sales. Microsoft said full-year revenue would range between $67.3 billion and $68.1 billion. EPS will be from $2.12 to $2.18. Analysts were projecting a top line of $67.3 billion and EPS of $2.16. But the company was more cautious with first-quarter projections. Year-over-year comparisons will be difficult because of last year's launch of a popular video game for the Xbox platform, said Chief Accounting Office Frank Brod. Microsoft projected first-quarter revenue of $14.7 billion to $14.9 billion and EPS of 47 cents or 48 cents. Analysts had been expecting revenue of $15 billion and EPS of 49 cents. That revelation went a large way to take the stock down more than 5% in after-hours trading to $26. In its fourth quarter, Microsoft said net income rose to $4.3 billion or 46 cents a share, vs. $3 billion, or 31 cents a share in the year-ago period. Analysts had been looking for a profit of $4.45 billion, or 47 cents. Revenue grew 18.4% to $15.84 billion, from $13.37 billion in the same quarter of last year. Analysts were expecting a top line of $15.65 billion, according to Thomson Reuters. . Popularity of the Xbox gaming platform continued, with 1.3 million consoles sold during the quarter. Revenue in the entertainment and devices division jumped 37% to $1.6 billion.
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