Microsoft is scheduled to announce its financial results for the second quarter of the year on January 19, 2012. The company will report its results after market close. Microsoft is expected to report its quarterly earnings in line with consensus estimates. The company is also likely to provide its third quarter guidance on the conservative side.
Expectations
Microsoft is expected to report its revenue at $20.9 billion for the second quarter of FY 2012, thus showing 5.1 percent year over year growth rate. Its gross profit for the quarter is expected to be announced at $15 billion. Microsoft's quarterly operating income has been pegged at $8.105 billion while its operating margin is expected to be at 38.7 percent. The company's total net income for the quarter is expected to be announced at $6.622 billion. Microsoft's earnings per share for the quarter is likely to be announced at $0.78.
First Quarter Results
Microsoft announced mild results for the first quarter of the year. The company had reported its first quarter revenue at $17.372 billion, while its gross profit for the quarter stood at $13.595 billion. The company had reported its operating income at $7.2 billion, while its net income for the quarter stood at $5.7 billion. Microsoft had reported its earnings per share at $0.68.
Earnings History
Microsoft is showing minor improvement in its earnings per share. For the first quarter of FY2011, it reported its earnings per share at $0.62, which increased to $0.77 in second quarter of the financial year. During the third quarter of the year, its earnings per share stood at $0.61. Microsoft concluded its previous financial year by reporting $0.69 in earnings per share for the fourth quarter of the year. Microsoft's earnings per share for the first quarter of FY2012 stood at $0.68.
Punch Line
Weakness in PC business is expected to have negative impact on Microsoft's earnings. The company is scheduled to launch four major new products this year. The positive impact of these products will be visible in the fourth quarter of current fiscal year. The company stock is currently trading at very low ratio.
