Microsoft's fiscal fourth quarter was ugly. No two ways about it.
The company missed on the top by a staggering $1.25 billion, reporting $13.1 billion against the $14.38 billion consensus.
It's an enormous miss, and stunning to many analysts covering the company.
Microsoft also missed on the bottom line, reporting 34 cents versus the 36 cents Wall Street was looking for. Still, to be fair, you could make the argument that Microsoft actually met expectations because it took 2 cents worth of impairment charges for legal, severance, inventory and other stuff.
Still, Microsoft shares have been on such a run that a miss like this one is a head-scratcher.
And it gets worse: Each of the company's key business units, save for its Online unit, which is so ironic, missed, and badly. Client revenue came in at $3.1 billion, $200 million light; Server and Tools, $3.5 billion, or $300 million less than expectations; Online services tallied $731 million against the $725 million anticipated; the Business Division, so critical to the Microsoft story and home to its Office products, was almost $500 million less than expected, and the Entertainment and Device division, home to Xbox and Zune, was more than $300 million less than projections.