It could be a bad day for Tech stocks. After a few days of companies beating lowered Wall Street expectations, Microsoft (MSFT, $27.52, up $0.26) reported earnings that missed by a penny. The company reported profits of $4.3 billion, or $0.46 a share, up from a profit of $3.04 billion, or $0.31 a share, in the year earlier period. Although revenue rose 18% to $15.84 billion and topped analysts forecast of $15.65, the penny miss was a big deal.
To make matters worse, Microsoft also said earnings for its next quarter would fall short of expectations. The company said earnings per share would come in at $0.47 or $0.48 on revenue between $14.7 billion and $14.9 billion. Wall Street was looking for earnings of $0.50/ $15.06 billion. The company also lowered full-year guidance but you get the drift.
The stock was down $1.65 to $25.87 in after-hours trading which will probably carry over when the opening bell rings. It’s too early to buy call options on Microsoft right now but for those of you who prefer to buy stock, Microsoft should be at two-year lows when trading begins this morning.