This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft's Earnings: Weekly Tech Recap

NEW YORK ( TheStreet) -- Microsoft (MSFT - Get Report) posted better-than-expected second-quarter earnings Thursday, but faced somewhat of a stock selloff due most to its Windows 7 sales miss.

The software giant's numbers, which were leaked during trading, saw the company post an adjusted profit of 77 cents per share on sales of $19.95 billion, up from 74 cents EPS on sales of $19 billion in the year-ago quarter. Analysts were expecting EPS of 68 cents and revenue of $19.14 billion.

The nice sales boost came mostly from Microsoft's entertainment division, which saw 55% growth over the quarter thanks to holiday sales of the Kinect for Xbox 360, Xbox Live subscriptions and Xbox games.

Shares of Microsoft, which has undergone something of a brain drain in recent months, closed down $1.11, or 3.84%, at $27.76 on Friday.

Verizon & AT&T

Telecom rivals Verizon (VZ - Get Report) and AT&T (T - Get Report) were both on deck this week, with investors closely monitoring the potential impact of the new Verizon iPhone.

Apple's (AAPL - Get Report) new buddy Verizon was up first, reporting its fourth-quarter results on Tuesday before market open. The telco raised its growth targets for profits and sales driven largely by wireless and the iPhone.

The telco said sales growth will more than double in 2011. Addressing analysts and investors at a special earnings presentation, Verizon executives said revenue will grow in the range of 4% to 8% this year, driven by an estimated 11 million Apple iPhone sales.

Shares of Verizon, which spent $1.4 billion to acquire data center specialist Terremark Worldwide (TMRK) on Thursday, ended the week down 86 cents, or 2.36%, at $35.63.

AT&T met Wall Street's targets with its fourth-quarter results on Thursday, but guided below analysts' estimates for 2011.

The telco also showed the beginnings of what is expected to be a slowdown in wireless subscriber growth as Verizon starts selling the iPhone next month. AT&T said it added 400,000 post-paid mobile phone subscribers in the fourth quarter, down from 745,000 post-paid customers added in the third quarter.

CEO Randall Stephenson, however, predicted that the smartphone market will continue to be strong for AT&T with the introduction of new smartphones based on Google's (GOOG) Android operating system and other devices.

AT&T's stock closed down 64 cents, or 2.28%, at $27.49 on Friday.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
MSFT $49.87 0.00%
NOK $5.87 0.00%
QCOM $50.52 0.00%
T $38.82 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs