Earnings Alerts

Microsoft Corp (MSFT) Earnings Surpass Forecasts with Strong 3Q Revenue Beat

  • Microsoft’s 3Q Revenue exceeded expectations with $61.86 billion, initially the estimate was $60.87 billion.
  • The productivity and business processes revenue reached $19.57 billion, just slightly above the projection of $19.54 billion.
  • Intelligent Cloud revenue also surpassed estimates, generating $26.71 billion against the forecasted $26.25 billion.
  • More Personal Computing revenue was at $15.58 billion, beating the expected $15.07 billion.
  • The earnings per share (EPS) stood at $2.94.
  • Operating income was higher than expected at $27.58 billion, the estimate was $26.22 billion.
  • However, the Capital expenditure was below prediction at $10.95 billion, originally foreseen to be $11.28 billion.
  • The confidence in Microsoft seems to be high as there are 62 buys, 5 holds and 0 sells.

Microsoft Corp on Smartkarma

Analysts on Smartkarma have recently provided bullish coverage on Microsoft Corp, offering insights into the company’s strategic moves and financial performance. In a report by In Good Company with Nicolai Tangen, Microsoft’s Chairman & CEO, Satya Nadella, highlights the importance of partnerships and innovation in driving economic growth. The decision to partner with OpenAI showcases Microsoft’s commitment to collaboration with ambitious technology innovators.

Further bolstering the positive sentiment, Baptista Research emphasizes Microsoft’s strong financial performance in the second quarter of fiscal year 2024. The company’s success is attributed to the significant growth of its Microsoft Cloud segment, powered by efficient Artificial Intelligence applications. Overall, analysts see indicators of a bright future for Microsoft, underpinned by AI infrastructure investments and growing demand for cloud services.


A look at Microsoft Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Microsoft Corporation, a leading software company, displays a promising long-term outlook based on the Smartkarma Smart Scores. With a solid Growth score of 4 and strong Momentum score of 4, Microsoft is positioned well for future expansion and continued market performance. Additionally, the company’s Resilience score of 3 suggests it has the capability to weather market challenges. While the Value and Dividend scores at 2 each indicate room for improvement in these areas, Microsoft’s overall outlook remains positive.

In summary, Microsoft Corporation, known for its software offerings including applications, cloud storage, and security solutions, is anticipated to experience growth and maintain momentum in the market. With favorable scores in Growth and Momentum, the company exhibits resilience against market fluctuations, although there may be opportunities for enhancement in terms of value and dividends. Overall, Microsoft’s strategic positioning and diverse product portfolio position it well for long-term success.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars