Microsoft profits plunge in Q4

Microsoft (MSFT), a Dow stock, reported profits in the last qtr (its Q4) plunged 29% because of weak computer sales. Revenue for MSFT fell for the first time since going public in 1986 & was well short of analysts' expectations. Its shares plummeted $1.87 (7%) in after-hours trading after rising 76¢ during daytime trading.

In the last qtr MSFT earnings sank to $3B, or 34¢ per share, down from $4.3B, or 46¢ per share last year. Earnings were hurt by legal charges, severance charges & the declining value of its investments. Excluding all those items, MSFT would haven beaten expectations by 2¢ per share. Quarterly sales dropped 17% to $13.1B (analysts were looking for $14.4B in sales). For the fiscal year ended June 30, MSFT's profit fell 17% to $14.6B ($1.62 per share) from $17.7B ($1.87 per share) in the prior year. Sales in their fiscal year sank 3% to $58.4B.

Dow should begin trading on Fri with a negative tone.

•Microsoft Profit Drops 29% as PC Slowdown Weighs on Revenue; Shares Slump


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