Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Green Business
Legal
Deals
Earnings
Summits
Business Video
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
Afghan Journal
Africa Journal
India Insight
Global News Journal
Pakistan: Now or Never?
World Video
Politics
Politics Home
Front Row Washington
Politics Video
Technology
Technology Home
MediaFile
Science
Tech Video
Opinion
Opinion Home
Chrystia Freeland
Felix Salmon
Jack Shafer
Breakingviews
David Rohde
Bernd Debusmann
Gregg Easterbrook
Nader Mousavizadeh
James Saft
David Cay Johnston
Edward Hadas
Christopher Whalen
Ian Bremmer
Mohamed El-Erian
Lawrence Summers
The Great Debate
Unstructured Finance
Newsmaker
Money
Money Home
Analyst Research
Global Investing
MuniLand
Reuters Money
John Wasik
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Life & Culture
Health
Sports
Arts
Faithworld
Business Traveler
Left Field
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Gaddafi killed as Libya's revolt takes hometown
|
11:55am EDT
Discussed
118
Strike shuts down Greece before austerity vote
108
Gaddafi captured as he fled Sirte: NTC official
99
Obama jobs roadshow seeks to tap anti-Wall St anger
Watched
Japanese airline, ANA, apologises for plane flip
Fri, Sep 30 2011
Rebels celebrate Gaddafi's capture
8:26am EDT
Rihanna's "inappropriate" outfit halts music video
Tue, Sep 27 2011
Soft PC sales likely to hold back Microsoft profit
Tweet
Share this
Email
Print
Related News
EBay shares drop on cautious forecast
Wed, Oct 19 2011
Amazon's tablet may be hottest holiday gadget
Wed, Oct 19 2011
Wait for new iPhone hits Apple results
Wed, Oct 19 2011
Yahoo meets low earnings expectations
Tue, Oct 18 2011
Apple blames iPhone rumors for disappointing results
Tue, Oct 18 2011
Analysis & Opinion
Tech wrap: Apple misses, Intel beats quarterly expectations
Morrison v. NAB’s 2nd act: way beyond securities fraud and RICO
Related Topics
Technology »
Media »
iPad »
Customers shop at Microsoft's first retail store during the grand opening in Scottsdale, Arizona October 22, 2009.
Credit: Reuters/Joshua Lott
By Bill Rigby
SEATTLE |
Thu Oct 20, 2011 5:48am EDT
SEATTLE (Reuters) - Microsoft Corp looks set to report flat or lower demand for its flagship Windows product on Thursday, a victim of limp personal computer sales, casting a shadow over otherwise strong earnings in a troubled global economy.
The world's largest software maker generally meets or beats Wall Street's profit forecasts -- as it has for the last nine quarters -- but investors tend to focus on Windows sales, which have dropped for the last three quarters when compared to year-ago figures.
In each of those three quarters, Microsoft shares have drifted lower in the days or weeks following earnings.
"It's a seasonally soft quarter for them," said Kim Forrest, senior analyst at Fort Pitt Capital Group, which holds Microsoft shares. "I want to hear comments on what will happen to the PC market. I expect little or no growth from the consumer. I just want to know that companies are still spending."
Global PC sales rose only 3.2 percent last quarter, according to research firm Gartner, propped up by emerging markets such as China. In the United States and Europe, consumers are reluctant to buy new PCs, or are lining up to buy Apple Inc's iPad instead.
Microsoft is shielded from the consumer slowdown partly because its core corporate customers are still spending money on new technology.
Strong results and a buoyant outlook from chipmaker Intel Corp on Tuesday also suggest that PC demand is not as weak as some fear.
The fact that PC sales are slow -- especially in the United States and Europe -- is no secret. The question is how much investors have already factored that into Microsoft's performance.
The company's shares are up 7 percent from 12 months ago, slightly ahead of the Nasdaq composite index's gain, closing at $27.13 on Wednesday. But the stock is still stuck in the $20-$30 range, as it has been for most of the past 10 years.
PROFIT INCREASE
Wall Street expects Microsoft to report a profit of 68 cents per share for its first quarter of fiscal 2012, up from 62 cents a year ago. Analysts are looking for sales to rise 6 percent to $17.2 billion.
The sales increase is likely to come from the unit which sells Microsoft's Office suite of applications -- now the company's biggest-selling product -- and the entertainment and devices unit, which makes the popular Xbox game console and Kinect hands-free game system.
Its server and tools unit -- which sells server software that powers data centers and "cloud computing" infrastructure -- is also growing strongly.
The black spot on Microsoft's report card is always its online services unit -- which includes the MSN portal and Bing search engine -- which has lost more than $8 billion in five years and shows no sign of stopping the bleeding, as Microsoft invests heavily to catch up with market leader Google Inc.
Aside from hints on the state of the PC market, investors will be listening for Microsoft's plans to integrate Skype into its products, after its $8.5 billion deal to buy the online chat service closed last week.
Any word on other possible deals would be eagerly received. Last month Reuters reported Microsoft might be looking at a second attempt to buy ailing Internet giant Yahoo Inc.
Microsoft is also likely to detail plans for its latest assault on the smartphone market soon. The first phones from its partnership with Nokia are expected on the market in the next two months.
On top of that, investors will welcome any news on the development of Windows 8 -- the code name for its new operating system -- which is set to hit the market next year and will represent Microsoft's charge into the tablet market.
(Reporting by Bill Rigby; Editing by Richard Chang)
Technology
Media
iPad
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Social Stream (What's this?)
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Contact Us
Advertise With Us
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.