Goldman Sachs Lowers Estimates on Microsoft AFter Thailand Floods

On a recent update note on Microsoft Cor. MSFT, Goldman Sachs lowers Windows revenue and EPS estimates in light of lower PC shipments expectations resulting form a scenario analysis on Thai floods. According to Goldman, “We are now modeling Windows revenue of $5.0 bn (prior $5.1 bn) in Dec11 and $19.0 bn (prior $19.4 bn) in FY12. Our total revenue declines to $20.8 bn (prior $20.9 bn) in Dec11 and $74.3 bn (prior $74.8 bn) in FY12. Our EPS estimates decline to $0.75 (prior $0.76) in Dec11 and $2.70 (prior $2.73) in FY12. Although our FY13 and FY14 top line estimates have changed marginally, our EPS forecasts remain unchanged. …We continue to see the stock trading in a fairly narrow trading range as the market awaits more information regarding developer momentum and available price points of Windows 8 devices.” MSFT traded at $27.16 per share at market close on Tuesday.