Analyst Hedges Bets on Microsoft’s Quarter

If an Associated Press report is to be believed, Thomas Weisel analyst Tim Klassell seems to be hedging his bets on Microsoft’s results in its just-finsiehd quarter.

In a note to clients, Klassell, noting industry-wide weakness in PC and server shipments, first says that Microsoft’s analyst-consensus estimates are at risk. Those estimates, for the company’s fiscal third quarter ending in March, peg earnings at 39 cents per share on revenue of approximately $14.1 billion.

Elsewhere in the client report, however, the analyst suggests that Microsoft could surprise the market one way or the other, perhaps on the positive side. Finally, though, he pushes himself off the seesaw and declares the following”

“But, again, we think that is less likely and we feel more comfortable with our more conservative outlook.”

I understand that it’s not easy to play the analyst game. My own view is that Microsoft will be light on the revenue side but hit its earnings estimate.

I could be wrong, though. I’ve been wrong before, and I know I’ll be wrong many more times before my pathetically mortal existence on this planet is eternally expunged.

However, is it too much to ask that analysts state their assumptions, give clear guidance, and take unambiguous positions? Okay, probably so. Still, one can dream.


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