Stocks to Watch: Microsoft, AT&T, Starbucks, P&G

Tickers in this article: CSCO HON MSFT PG SBUX T

NEW YORK -- Microsoft (MSFT) received a boost in its fiscal second quarter from its server & tools division and Windows 8 licenses, helping it post earnings that topped Wall Street expectations.

The software giant earned 76 cents a share on a GAAP basis during the quarter on revenue of $21.46 billion. Analysts were expecting profit of 75 cents a share on revenue of $21.5 billion.

The company's Windows division saw quarterly sales jump 24% year over year to $5.88 billion, thanks to Windows 8. Microsoft has sold over 60 million Windows 8 licenses to date. The server & tools business saw a 9% year-over-year increase in sales to $5.19 billion.

Microsoft Falls On Mixed Results


AT&T(T) posted a narrower loss in the fourth quarter as Apple's(AAPL) iPhone helped generate record smartphone sales.

The telecom gant posted a loss of 68 cents a share, or $3.9 billion, compared with a loss of $1.12 a share, or $6.7 billion, a year earlier.

Adjusted earnings in the quarter were 44 cents a share, up from 40 cents a year earlier. Analysts were looking for earnings of 46 cents a share.

AT&T posted revenue of $32.6 billion, an increase of 0.2% and above analysts' forecasts of $32.22 billion.

The company's total wireless revenue, which includes equipment sales, rose 5.7% to $17.6 billion. AT&T added 1.1 million wireless subscribers during the quarter, bringing the total to 107 million. This included 780,000 postpaid net adds, AT&T's biggest gain in 12 quarters.

AT&T sold a record 10.2 million smartphones and activated a record 8.6 million iPhones. AT&T also had its best-ever sales quarter for Android phones, but confirmed that record smartphone sales hurt margins. Fourth-quarter wireless operating income margin was 14.5%, down from 15.5% a year earlier.

In 2013, AT&T expects revenue growth to exceed 2% and to deliver earnings per share growth in the upper-single digits or higher.

AT&T Narrows Loss as Smartphones Fly Out the Door


Starbucks(SBUX) , the coffee chain, said Thursday that fiscal first-quarter profit rose 13%.

Starbucks said global same-store sales in the quarter rose 6%.

Starbucks earned $432.2 million, or 57 cents a share, in the quarter, up from $382.1 million, or 50 cents a share, in the year-earlier period. Total revenue rose 11% to $3.8 billion.

Analysts were expecting earnings of 57 cents a share on revenue of $3.85 billion.

The company affirmed its outlook for the year, with earnings expected to be between about $2.10 and $2.15 a share, which represents growth of 15% to 20% from the previous year.


Procter & Gamble (PG) is expected by Wall Street Friday to post fiscal second-quarter earnings of $1.11 a share on revenue of $21.91 billion.

P&G May Be Less of a Gamble Than You Think

Usage of this site is governed by TheStreet's Terms of Use available here. Information collected on this site may be collected by TheStreet and OC Register. TheStreet's use of information collected on this site will be governed by TheStreet's privacy policy available here. OC Register's use of information collected on this site will be governed by OC Register's privacy policy available here. If either TheStreet's or OC Register's privacy policy have provisions that are more restrictive than the provisions of the other party's privacy policy, such more restrictive provisions shall not apply to such other party.

Copyright © 2012 Orange County Register Communications. All Rights Reserved.
Site Help | Site Map