Loving Microsoft (MSFT)
Microsoft Corp (NASDAQ:MSFT) is a trade that has been working since we said back in June — Get ready to sell the house fellow Masters and with the proceeds buy shares of Microsoft (NASDAQ:MSFT).
MSFT shares are up 16% since that time, just over a month ago.
The lovefest continues today with some great analysis on the company’s tax rate (seekingalpha) which came to light during last week’s conference call.
Adam Muller | SeekingAlpha.com
On July 21 after the bell Microsoft (MSFT) released fourth quarter 2011 and full year earnings. Fourth quarter EPS came in at $0.69 per share versus the consensus estimate of $0.576, a 20% earnings beat. EPS for the 12 months ended June 30, 2011, were $2.69 versus $2.10 for 2010, a 28% year-over-year increase.
In the wake of the earnings release the stock was a roller coaster in the after-market. It was clear that investors were having different reactions to the earnings release.
The Tax Rate Decreased Dramatically in Q4 2011
One of the issues being discussed that may have led to different interpretations of the earnings release was the fourth quarter and fiscal 2011 tax rate.
For the fourth quarter the effective tax rate was 7% versus 25% for the same period in 2010. For the full year the effective tax rate was 17.5% versus 25% for 2010. Continue>>
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