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July 20, 2006

Microsoft beats the street; announces share buyback

Posted by David Hunter at 5:18 PM ET.

Amanda Cantrell at

Microsoft’s quarterly profit fell by 24 percent on higher costs and legal expenses, but the company reported revenues that beat expectations and announced a $40 billion share buyback program, sending shares sharply higher in after-hours trading.

Microsoft reported net income of $2.83 billion, or 28 cents a share, including three cents for legal charges. Excluding the charges, earnings per share were 31 cents, a penny ahead of Wall Street analysts’ expectations.

The company also announced a plan to buy back $20 billion worth of shares by Aug. 17 and authorized the purchase of $20 billion more through June 2011.

Microsoft reported sales of $11.8 billion, a 16 percent increase over the year-ago quarter; analysts expected $11.6 billion.

Microsoft expects much the same income in the current quarter on lower revenues. Press release is here. As far as the share buyback goes, I guess that despite all indications, Steve Ballmer really was listening to the grumpy investors although the buyback isn’t as big as some of them wanted.

Filed under Financial, General Business, Investor Relations, Microsoft

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3 Responses to “Microsoft beats the street; announces share buyback”

  1. Niall Kennedy leaves Microsoft after four months -- Microsoft News Tracker Says:

    [...] Of course, I am exaggerating. Microsoft wouldn’t be doing share buybacks if they were completely oblivious to investors and maybe that’s the real problem. Going for both “guns and butter” is a famous recipe for getting neither. With that, we’ll adjourn the argument about whether Microsoft is a growth stock or a value stock for another day. Filed under Technologies, RSS and Atom, General Business, Employee Retention, Financial, Windows Live, Investor Relations, Microsoft   [Permalink] [...]

  2. Microsoft buys back $3.8B of shares, shifts remainder -- Microsoft News Tracker Says:

    [...] On Friday, the company said the remaining $16.2 billion worth of shares offered in the August tender have been added to its longer-range buyback program through June 30, 2011. The formal press release for today’s announcement is here. The stock buyback was announced in July to gladden the hearts of investors disappointed with the lackluster performance of Microsoft’s share price, so I suppose the big news is that Microsoft wasn’t able to spend all $20B that they were willing to lay out at up to $24.75 per share which was a slight premium to the market price when the buyback was announced. There seem to still be a lot of folks hoping for better days. Filed under General Business, Financial, Investor Relations, Microsoft   [Permalink] [TrackBack] [...]

  3. Microsoft Financial Analyst Meeting 2007 Wrap-up -- Microsoft News Tracker Says:

    [...] Well, I suppose management can always buy off the complainers with increased dividends and more share buybacks. [...]

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