Goldman Sachs’s Heather Bellini tries this morning to “piece together the Windows puzzle” for Microsoft’s (MSFT) fiscal Q2 that ended in December, which is now expected to be not as good as anyone had hoped as a result of the company’s disclosure on Tuesday evening that PC growth was weak in December.
Microsoft reports results a week from today, and Bellini is modeling $20.8 billion in revenue and 75 cents EPS, and she had warned yesterday that estimates might at this point be too high.
Today, Bellini opines that the full-year results for Windows sales are going to be weaker for Microsoft than she’d previously thought.
For Q3 fiscal 2012 and for fiscal 2012 (ending June) we remain below consensus. We see Street expectations pulling back based on December quarter results combined with our checks that point to soft demand throughout Europe (ex-Germany) and conservative corporate budgets for 2012. Continued weakness in PC shipments arising from the Thailand floods would also impact Windows results in the March 2012 quarter.
Bellini maintains a Neutral rating on shares of Microsoft and a $29 price target.
Microsoft stock today is up 9 cents at $27.81.
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