Microsoft, Yahoo: So Close, and Yet So Far
by John Paczkowski
Posted on July 18, 2008 at 8:09 AM PT
Well, look who missed analysts’ expectations by a penny. Microsoft. Though the company Thursday reported 18 percent in revenue growth and 21-percent growth in earnings for its fourth quarter, its 32-percent growth in per-share earnings didn’t quite meet Wall Street expectations. Investors wanted per-share earnings of 47 cents. Microsoft (MSFT) gave them 46 cents.
The one-cent discrepancy has played havoc with the company’s share price, knocking it down to near-Yahoo (YHOO) levels. “Clearly, we’re disappointed that our strong financial results are not reflected in our stock price,” Microsoft CFO Chris Liddell told financial analysts during the company’s earnings conference call. “The 18-percent revenue growth rate represents our fastest growth in over a decade [and] we’re confident we can continue to produce double-digit growth.”
