Microsoft Corp. said Thursday that its first-quarter net profit more than doubled, topping even the most optimistic forecasts, as revenue surged on its new licensing plan and reseller sales.
The world’s largest software company said profit jumped to $2.73 billion, or 50 cents a share, from $1.28 billion, or 23 cents a share, a year ago, when it took a charge of 20 cents a share after writing down $1.2 billion in investments. The consensus Wall Street estimate for the most recent quarter was 43 cents a share.
The Redmond, Wash.-based company posted revenue of $7.75 billion, up from $6.13 billion a year ago and better than its own expectations of between $7 billion and $7.1 billion.
“It was a blowout,” said Scott McAdams, chief executive of Seattle-based investment research firm McAdams Wright Ragen. “We haven’t seen a quarter like this in years. The bad news is it may not be sustainable.”
The report came out after the markets closed.
In other earnings news:
– Sun Microsystems Inc. said it lost $111 million in the first quarter and will cut 11 percent of its workforce. The Palo Alto, Calif.-based software maker, which beat Wall Street estimates by 2 cents a share, will cut 4,400 of its 39,400 employees.
Sun said it lost 4 cents a share compared with a loss of 6 cents a share, or $180 million, in the same period last year. Excluding special items, the company lost $78 million, or 2 cents a share. Sales fell nearly 4 percent, to $2.75 billion from $2.86 billion.
The report came out after the close of trading.
– Nortel Networks Corp. reported a third-quarter loss of $1.8 billion, or 42 cents a share, but its results were in line with Wall Street expectations and down from a loss of $3.47 billion, or $1.08 a share, a year ago.
The Toronto-based telecommunications equipment-maker had revenue of $2.36 billion, down 36 percent from $3.69 billion in the year-ago period.
The report came out after the markets closed.
– Southwest Airlines Co. said it earned $74.9 million in the third quarter but warned that its streak of 46 straight profitable quarters could end in the last three months of the year.
The Dallas-based carrier said its third-quarter profit equated to 9 cents a share. A year ago, Southwest made $151 million, or 19 cents a share. Revenue was $1.39 billion, up from $1.34 billion a year ago.
Excluding a one-time gain of $48 million related to the federal government’s bailout plan, Southwest said it earned $50.5 million, or 6 cents per share, in the most recent quarter, 1 cent a share better than Wall Street estimates.
Chief Executive James Parker said higher insurance and security costs and the uncertain effects of a possible war against Iraq cloud Southwest’s fourth-quarter profit picture.
Shares of Southwest rose $1.18, or 8.9 percent, to $14.48 in NYSE trading.
– Northwest Airlines Corp. reported a third-quarter loss of $46 million, or 55 cents a share, easily beating analysts’ forecasts of a loss of 82 cents a share.
A year ago, the Eagan, Minn.-based airline, the nation’s fourth-largest carrier, earned $19 million, or 20 cents a share. That included a one-time gain of $158 million that was part of the federal government’s bailout plan. Revenue inched down to $2.56 billion from $2.59 billion.
Shares of Northwest gained 47 cents, or 7.4 percent, to $6.85, on the Nasdaq market.
– Continental Airlines Inc. reported a third-quarter loss of $37 million, or 58 cents a share, compared with a profit of $3 million, or 5 cents a share, a year ago, when the Houston-based carrier received federal bailout money. Analysts had expected a loss of 74 cents a share for the most recent quarter, according to Thomson Financial/First Call. Revenue fell to $2.18 billion from $2.22 billion.
Continental stock advanced 41 cents, or 8.5 percent, to $5.21, in NYSE trading.
– Philip Morris Cos. said third-quarter net income soared 87 percent, inflated by an after-tax gain of about $1.7 billion from the sale of its Miller Brewing operation to South African Breweries PLC.
The New York-based food and tobacco giant reported net income of $4.36 billion, or $2.06 a share, compared with $2.33 billion, or $1.06 a share, in the same period last year. Core earnings rose 4.1 percent, to $2.67 billion, or $1.26 a share, meeting Wall Street estimates. Revenue fell to nearly $20 billion from $20.25 billion.
Philip Morris stock gained $1.70, to $40.30, in NYSE trading.
– Sprint Corp. reported consolidated third-quarter net income of $519 million, reversing a year-ago loss and surpassing analysts’ expectations. A year ago, the Kansas City, Mo.-based company lost $134 million. Revenue rose 3 percent, to $6.79 billion.
Sprint FON, the company’s phone and data division, had earnings of $526 million, or 59 cents a share. Excluding special items, it earned 44 cents a share, beating estimates of 37 cents a share.
The company’s wireless business, Sprint PCS, lost $7 million, or 1 cent a share. Excluding special items, it lost 13 cents a share, 6 cents a share less than analysts’ forecasts. But the business lost 78,000 subscribers in the quarter.
The report came out after the close of trading.
– Gateway Inc. said it had a third-quarter loss of $49.7 million, or 15 cents a share, compared with a year-earlier loss of $519.7 million, or $1.61 a share. The most recent result met analysts’ estimates. Revenue dropped to $1.12 billion from $1.41 billion.
The report came out after the close of trading.
