Microsoft may issue a sales and profits warning for the second
quarter, ending 31 December, which would be the first Xmas holiday
season falls since December 2000.
The sales and profits warning prediction has been made by Morgan
Stanley financial analyst Adam Holt.
Other leading IT firms, including Intel, have also issued sales
and profits warnings as a result of the PC buying downturn and the
general economic slowdown, so Microsoft faltering would not be an
absolute surprise. However, some may be wondering whether Redmond
is immune.
The firm has continued to hire and up to now has
posted record
sales and profits, even if those underlying increases have
slowed.
But Holt says that since the company last provided guidance in
October, it may have come up short of its targets for the
quarter.
Whether or not Microsoft gives an advance warning is anyone's
guess, but Holt has cut his financial estimates for the firm's
second quarter.
He has reduced expected revenue to $16.7bn and profits to 46
cents per share, down from the previous $17.3bn and 51 cents.
Microsoft's own October guidance for the market was for revenue
of $17.3bn to $17.8bn, and profits of 51-53 cents per share.
The second quarter results will be posted by Microsoft on 22
January.