Microsoft delivered strong Q2 Revenue & Earnings. The Company announced record numbers for the Sept - Dec'07 period. Revenues were up 30% to $16.4 Billion. Operating Income was up 87% to $6.5 Billion & Earnings Per Share (EPS) were up 92% to $0.50 per share. It's worth noting that - even in this very volatile financial climate, Microsoft was able to generate strong results in all of it's key Business Units. Below is a breakdown - by division:
- Windows Client (Vista/XP): $4.3 Billion, up 68%
- MBD (Office/SharePoint): $4.8B, up 37%.
- Server & Tools (SQL Server/Visual Studio): $3.3 Billion, up 15%.
- Entertainment (Xbox & Zune): $3.1 Billion
- Online Services (MSN/Live): $863M, up 38%.
There appears to be little fear of a Recession hit in Redmond, as the Management Team offered strong guidance for Q3 which ends in March '08. Revenue is expected to be in the range of $14.3 billion to $14.6 billion. Diluted earnings per share are expected to be in the range of $0.43 to $0.45 and Operating income is expected to be in the range of $5.6 billion to $5.7 billion.
Full Fiscal Year guidance indicates that MSFT could hit the $60B mark in revenue - a figure normally reserved for Large Oil Conglomerates. Full year, operating income is expected to be in the range of $24.2 billion to $24.4 billion and diluted earnings per share are expected to be in the range of $1.85 to $1.88.In the days ahead, I'll do a general comparison between Microsoft, Google and Yahoo. In particular, I'll hone in on the MSFT/Online Services Group - and provide my commentary how we stack up overall.....