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Microsoft 2011 4Q Results

Posted on | July 21, 2011 | Comments Off on Microsoft 2011 4Q Results



Microsoft (MSFT) reported an excellent fourth quarter, handily beating analyst estimates with a 30% increase in profit from a year ago. This isn’t that surprising considering all major corporations these days are slaughtering analysts (a typical event for this point in the bull market cycle).

Net income rose 30% to $5.9 billion or $.69 per share.  Revenue rose 8% to $17.4 billion.

The most exciting areas were the Office business and the XBox Kinect which reported very nice sales in the quarter.  We will break down the individual departments and their performance in a later post.

The stock is up over 2% in the after hours session as a result of the quarterly results. As the stock climbs towards $28 a share, the purchase I made recently at $24 a share is looking like a great buy.  While my target buy price is even lower, I felt like the risk was low enough to go ahead and buy at $24.  Up well over 10% since the buy, we have a nice margin of safety while we hang on to this stock and collect dividends.

I think the next few years are going to be very good for holders of Microsoft stock.  I will be holding and adding to the position on any significant weakness.

More to come on the recent quarter…