On Oct. 26, Microsoft (NASDAQ:MSFT) released Q1 2007 earnings for the period ended Sept. 30, 2006.
- A revenue increase of 11% and net profit growth of 10.7% surprised Mr. Market.
- The diluted share count dropped 7.1%.
- Margins dropped across the board.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|---|
|
Sales |
$10,750 |
$10,811 |
$9,741 |
11.0% |
|
Net Profit |
-- |
$3,478 |
$3,141 |
10.7% |
|
EPS |
$0.31 |
$0.35 |
$0.29 |
20.7% |
|
Diluted Shares |
10,010 |
10,772 |
(7.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
84.31% |
87.14% |
(2.83) |
|
Operating Margin |
41.38% |
45.24% |
(3.86) |
|
Net Margin |
32.17% |
32.25% |
(0.08) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$31,832 |
$40,056 |
(20.5%) |
|
Accounts Rec. |
$6,879 |
$5,799 |
18.6% |
|
Inventory |
$2,068 |
$726 |
184.8% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,406 |
$1,852 |
29.9% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$4,061 |
$4,329 |
(6.2%) |
|
Capital Expenditures |
$411 |
$213 |
93.0% |
|
Free Cash Flow |
$3,650 |
$4,116 |
(11.3%) |
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)
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 was long Microsoft common and calls but had no position in any other company mentioned. Microsoft is a Motley Fool Inside Value recommendation. Yahoo! is a Motley Fool Stock Advisor pick. See what investors are saying about Microsoft at Motley Fool CAPS. Fool rules are here.
