- October 27, 2013 at 12:12 pm #29570
Microsoft decides to take stock price seriously, surgesSteve Ballmer was known for caring more about profits than stock prices, sometimes to the dismay of shareholders. Yet in his last days, after a re-organization of the way Microsoft reports financial earnings (to go along with the â€œfunctionalâ€ reorg happening across the company), Ballmer has managed to blow away expectations with its 1st quarter results yesterday, and fire off a 6% surge in the companyâ€™s stock today, reaching nearly all time high levels.A post on Jim Cramerâ€™s The Street details the surge:Microsoft led the S & P 500 into all-time-high territory on Friday after it beat analyst expectations on earnings. Shares were surging 6.4% to $35.88 in afternoon trading. The S&P was gained 0.3% to 1,756.82 to extend its 2013 advance to 24%. Seattle-based Microsoft reported first-quarter earnings of 62 cents a share, over 53 cents a share in the year-ago quarter. Revenue was 16% higher to $18.53 billion.Analysts surveyed by Thomson Reuters had anticipated earnings of 54 cents a share on $17.79 billion in revenue. Expectations for the quarter had been conservative as investors dealt with uncertainty over managementâ€™s succession plan and an expensive acquisition of Nokiaâ€™s mobile arm.Microsoft took measures to set itself up for this breakaway quarter, writing off nearly a billion dollars on poor sales of the original Surface devices, and this weekâ€™s lackluster showing by Apple in introducing a solid, but not particularly innovative new line of Macbooks and iPads probably didnâ€™t do anything to help Microsoft.Source: Microsoft decides to take stock price seriously, surges
You must be logged in to reply to this topic.