On April 28, Microsoft (NASDAQ:MSFT) released Q3 2006 earnings for the period ended March 31, 2006.
- Revenues and earnings miss Street consensus estimates.
- Earnings per share climb 23.4% on a 4.7% decrease in diluted share count.
- Free cash flow through Q3 came in behind last year's level, largely because of increased capital expenditures and a swing in balance of other current assets.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$11,040 |
$10,900 |
$9,620 |
13.3% |
|
Net Profit |
-- |
$2,977 |
$2,563 |
16.2% |
|
EPS* |
$0.31 |
$0.29 |
$0.23 |
23.7% |
|
Diluted Shares |
10,415 |
10,931 |
(4.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Gross Margin |
81.39% |
85.83% |
(4.44) |
|
Op. Margin |
35.67% |
34.60% |
1.06 |
|
Net Margin |
27.31% |
26.64% |
0.67 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$34,816 |
$37,594 |
(7.4%) |
|
Accounts Rec. |
$6,818 |
$5,610 |
21.5% |
|
Inventory |
$1,113 |
$340 |
227.4% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,354 |
$1,636 |
43.9% |
|
Long-Term Debt |
-- |
-- |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$11,123 |
$12,629 |
(11.9%) |
|
Capital Expenditures |
$833 |
$552 |
50.9% |
|
Free Cash Flow |
$10,290 |
$12,077 |
(14.8%) |
Find out why Fools always follow the money.
Related Companies:
- IBM (NYSE:IBM)
- Google (NASDAQ:GOOG)
- Yahoo! (NASDAQ:YHOO)
- Red Hat (NASDAQ:RHAT)
- Sony (NYSE:SNE)
Microsoft is a Motley Fool Inside Value recommendation. A free trial will let you find out why our cheap-stock guru thinks Mr. Softy has the goods to deliver for investors.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Seth Jayson had shares of Microsoft but no positions in any other company mentioned. Fool rules are here.
