Pender's Blog by Lee Pender, RCPU Editor

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Microsoft Earnings: Good But Not Good Enough

Microsoft blew away Wall Street expectations with its earnings report last week -- but that didn't help its stock price much. Windows earnings were strong, backed by the performance of Windows 7. However, the critical Server and Tools division showed a bit of weakness quarter-over-quarter, and the Microsoft Business Division (think Dynamics) actually recorded a small revenue shortfall compared to the corresponding 2009 quarter.

All of that sent Microsoft's stock price down late last week, although it did gain a bit of a bump today. Still, it closed Monday down from where it was prior to Thursday's earnings announcement. Such is the price of success, we suppose -- when very good is still not good enough.

Posted by Lee Pender on April 26, 2010


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