The UBS analyst told Bass that it’s possible none of Microsoft’s five divisions will hit company and Wall Street revenue forecasts. Bellini also believes cost cuts won’t be enough to hit profit targets.
“Enterprises have gone on a buyer’s strike just like consumers have,” said Bellini. “You see the unemployment numbers — I don’t think people are worrying about upgrading laptops and desktops.”
Microsoft reports its fiscal second quarter earnings — the quarter ending Dec. 31 — on Jan. 22, 2009, at 2:30 p.m.
For Q2, Microsoft’s current guidance is:
- Revenue of $17.3 billion to $17.8 billion.
- Operating income of $6.1 billion to $6.4 billion.
- Diluted earnings per share of $0.51 to $0.53.