Microsoft (MSFT, $270.22) fiscal Q3 earnings beats Zacks Consensus
Microsoft posted its third-quarter fiscal 2022 earnings, which rose +9.4% from the year-ago quarter to $2.22 per share, surpassing the Zacks Consensus Estimate by 1.83%.
Revenues of $49.360 billion increased +18.4% year over year and exceeded the Zacks Consensus Estimate by 0.81%. On a non-GAAP basis and at constant currency (cc), revenues rose +21% year over year. Adverse forex movement hurt revenues by $302 million in the quarter.
Revenue from the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses, increased 16.5% (up 19% at cc) on a year-over-year basis to $15.79 billion.
Office Commercial products and cloud services segment revenue rose 12% (up 14% at cc) on a year-over-year basis.
Office 365 commercial revenues climbed +17% year-over-year (up 20% at cc), on the back of Office 365 Commercial seat growth of 16%.
Enterprise service revenues rose 8% (up 7% at cc) driven by growth in Enterprise Support Services.
More Personal Computing segment, which primarily includes Windows, Gaming, Devices and Search businesses, were up 11.4% (same percentage at cc) year over year to $14.520 billion, on the back of strength in gaming and Windows OEM.
MSFT's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for MSFT turned positive on May 25, 2023. Looking at past instances where MSFT's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 339 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 373 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 May 25, 2023. 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.
Fundamental Analysis (Ratings)
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 outstanding 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 (12.804) is normal, around the industry mean (31.480). P/E Ratio (36.364) is within average values for comparable stocks, (167.650). Projected Growth (PEG Ratio) (2.465) is also within normal values, averaging (4.158). Dividend Yield (0.008) settles around the average of (0.068) among similar stocks. P/S Ratio (12.092) is also within normal values, averaging (75.604).
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of software and harware products
Industry PackagedSoftware
MSFT and
Correlation & Price change
A.I.dvisor indicates that over the last year, MSFT has been closely correlated with MANH. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if MSFT jumps, then MANH could also see price increases.
| Ticker / NAME | Correlation To MSFT | 1D Price Change % | ||
|---|---|---|---|---|
| MSFT | 100% | +0.85% | ||
| MANH - MSFT | 74% Closely correlated | +1.11% | ||
| ADBE - MSFT | 74% Closely correlated | +2.25% | ||
| FFIV - MSFT | 74% Closely correlated | +0.34% | ||
| ANSS - MSFT | 74% Closely correlated | +0.54% | ||
| INTU - MSFT | 73% Closely correlated | +1.98% | ||
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