Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, July 22, 2016

Article Excerpt

MICROSOFT CORP., $56.57, Nasdaq symbol MSFT, is the world’s largest software provider. Its Windows operating system powers about 90% of the world’s personal computers. The stock rose 6% this week after the company reported better-than-expected results. In its fiscal 2016 fourth quarter, ended June 30, 2016, revenue rose 2.1%, to $22.6 billion from $22.2 billion a year earlier. That beat the consensus forecast of $22.2 billion. Strong demand for Microsoft’s Azure cloud computing service offset weaker sales of its Windows software. Earnings in the quarter rose 8.2%, to $5.5 billion from $5.1 billion. Due to fewer shares outstanding, earnings per share gained 11.3%, to $0.69 from $0.62. Those results exclude unusual items, including a writedown of the company’s mobile phone business and the costs related to its restructuring plan. On that basis, the latest earnings beat the consensus estimate of $0.58 a share. Microsoft will probably earn $2.88 a share in fiscal 2017, and the stock trades at a reasonable 19.6 times that forecast…