Side-by-side comparison of Microsoft’s and Apple’s Earnings
Yesterday and today, Apple and Microsoft reported quarterly earnings respectively, on the quarter that ended in March. Apple blew past consensus expectations and brought in the best non-holiday season quarterly result ever in company history. That is truly remarkable given the current economic climate. Microsoft, on the other hand, recorded the company’s first ever revenue decline.
Here is a side-by-side comparison of the quarterly results.
| Microsoft | Apple | |
| Ticker | MSFT | AAPL |
| Market Cap | $168 billion | $111 billion |
| Revenue | $13.65 billion | $8.16 billion |
| YOY Change | (6%) | +9% |
| Operating Income | $4.44 billion | $1.67 billion |
| YOY Change | (3%) | +27% |
| Net Income | $2.98 billion | $1.21 billion |
| YOY Change | (32%) | +15% |
| EPS | $0.33 | $1.33 |
As you can see, Microsoft is still making a lot more money than Apple, but Apple is catching up fast. Microsoft’s business is also much more diversified, so it is quite remarkable that Apple is making the kind of money it is making, given its limited diversification. While Microsoft continues to make lots of money, nobody is expecting it to grow its revenue in the double digits anytime soon in this economy. But Apple seems to be well-positioned for further growth as the economy recovers. The growth potential of the company makes Apple’s stock trade at a 25 multiple whereas Microsoft’s P/E is at around 10.
