Microsoft Corp. posted earnings much stronger than expected by analysts. The performance was bolstered by the tech behemoth’s cloud revenues and personal computer sales.
Microsoft’s earnings for the three months ending in December, (the company's fiscal second quarter) increased +34% year-over-year to $2.03 per share, well ahead of the Street consensus forecast of $1.64 per share.
Revenues surged +17% year-over-year to $43.1 billion, again exceeding analysts' estimates of $40.2 billion.
Intelligent Cloud revenues climbed +23% from the year-ago period to $14.6 billion, with server products and cloud services sales rising 26%, driven by a 50% jump in revenues for Azure, Microsoft's cloud offering.
Revenues in Personal computing segment rose +14% to $15.1 billion, apparently driven by the 'work-from-home' culture amid pandemic.
The Stochastic Oscillator for MSFT moved out of overbought territory on March 27, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 72 similar instances where the indicator exited the overbought zone. In of the 72 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on March 28, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MSFT turned negative on March 28, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MSFT broke above its upper Bollinger Band on March 14, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 389 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.123) is normal, around the industry mean (28.564). P/E Ratio (38.040) is within average values for comparable stocks, (146.896). Projected Growth (PEG Ratio) (2.134) is also within normal values, averaging (2.776). Dividend Yield (0.007) settles around the average of (0.085) among similar stocks. P/S Ratio (13.793) is also within normal values, averaging (77.699).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software and harware products
Industry PackagedSoftware