Microsoft Corporation (MSFT) – A strong quarter, but the MSFT-ATVI creates uncertainty

Microsoft Corporation (MSFT) (Q4FY23)

Stock performance: Microsoft Corporation‘s stock price increased by 33.34% in the past 1-year. The stock has a 52-week high of $366.78 and its 52-week low is $213.43. The stock price showed a sideways trend in the past 3- month period and gave -0.38% returns.

Q4FY23 Performance: Revenue was $56.18bn and increased 8%. Operating income was $24.3bn in GAAP terms increased 11%. Net income was $20.1bn and increased by 20%. Diluted earnings per share was $2.69 and increased 21%. Effective tax rate of 19%.

Operating expenses were $15.1bn up 2% Y/Y driven by a charge related to Irish Data Protection Commission matter. Capital expenditures including assets acquired under finance leases were $10.7bn to support demand in the cloud & AI offering.

Guidance: For Q1FY24, Productivity and Business Processes revenues are expected between $18.0bn to $18.3bn. Intelligent Cloud Business revenues are expected between $23.3bn to $23.6bn. More Personal Computing Business revenues are expected between
$12.5bn to $12.9bn. Cost of revenue of $16.6bn to $16.8bn. Effective tax rate to be ~19%.

Highlights

Azure’s expansion is also being fueled by the company’s primary focus on innovation. Microsoft is constantly introducing new features and services to Azure, and the business is also heavily spending on R&D to guarantee that Azure stays a top cloud computing platform.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value-Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10-Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 39

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