{"id":43607,"date":"2023-08-02T14:32:28","date_gmt":"2023-08-02T18:32:28","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/microsoft-stock-outperformed-the-expectations-in-q4\/"},"modified":"2023-08-02T14:32:30","modified_gmt":"2023-08-02T18:32:30","slug":"microsoft-stock-outperformed-the-expectations-in-q4","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=43607","title":{"rendered":"Microsoft Stock Outperformed The Expectations In Q4"},"content":{"rendered":"<div>\n<p>Microsoft\u2019s stock (NASDAQ: MSFT) has gained approximately 40% YTD as compared to the 19% rise in the S&amp;P500 index over the same period. Further, at its current price of $336 per share, it is trading 3% below its fair value of $345 \u2013 Trefis\u2019 estimate for <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/MSFT\/no-login-required\/eByyBqJl\/Microsoft-MSFT-Valuation-Is-MSFT-Stock-Expensive-Or-Cheap-?fromforbesandarticle=trefis230802\">Microsoft\u2019s valuation<\/strong><strong>. <\/strong>The technology giant surpassed the consensus estimates in the fourth quarter of FY2023 (FY July-June). It reported an 8% y-o-y increase in total revenues to $56.2 billion, driven by a 10% growth in the productivity &amp; business processes segment and a 15% rise in the intelligent cloud unit. However, the top line was somewhat offset by a 4% drop in the more personal computing division. It was primarily due to a 12% decrease in the Windows OEM and a 20% decline in the devices revenues. On the cost front, the operating expenses as a % of revenues witnessed a favorable drop in the quarter, thanks to lower sales &amp; marketing and research &amp; development costs. Overall, this led to a 20% y-o-y improvement in the net income to $20.1 billion.<\/p>\n<p>The company\u2019s top line grew 7% y-o-y to $211.9 billion in FY 2023. It was due to a 9% rise in productivity &amp; business process revenues, followed by a 17% growth in the intelligent cloud unit, partially offset by an 8% decrease in more personal computing division. On the flip side, the operating margin witnessed a slight drop in the year. This coupled with higher effective income tax as compared to 2022, resulted in a 1% drop in the net income to $72.4 billion.<\/p>\n<p>Moving forward, we expect the Q1 2024 revenues to be on similar lines. Notably, the firm expects to record $53.8-$54.8 billion in revenues in Q1. Altogether, <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/MSFT\/no-login-required\/5BaVwfzq\/Microsoft-Revenues-How-Does-MSFT-Make-Money-?fromforbesandarticle=trefis230802\">Microsoft revenues<\/strong> are estimated to touch $222.96 billion in FY2024. Additionally, MSFT\u2019s net income margin is likely to see a slight improvement in the year. It will likely result in a net income of $77.8 billion and an annual GAAP EPS of $10.52. This coupled with a P\/E multiple of just below 33x will lead to a valuation of $345.<\/p>\n<p>What if you\u2019re looking for a portfolio that aims for long-term growth? Here\u2019s a <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/wx9hwxU6\/Value-Portfolio-with-407-Return-Since-2016-vs-100-for-S-P-500?fromforbesandarticle=trefis230802\">value portfolio<\/strong> that\u2019s done much better than the market since 2016.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/08\/02\/microsoft-stock-outperformed-the-expectations-in-q4\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Microsoft\u2019s stock (NASDAQ: MSFT) has gained approximately 40% YTD as compared to the 19% rise in the S&amp;P500 index over the same period. Further, at its current price of $336 per share, it is trading 3% below its fair value of $345 \u2013 Trefis\u2019 estimate for Microsoft\u2019s valuation. The technology giant surpassed the consensus estimates [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":43608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-43607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Microsoft Stock Outperformed The Expectations In Q4 | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Microsoft\u2019s stock (NASDAQ: MSFT) has gained approximately 40% YTD as compared to the 19% rise in the S&amp;P500 index over the same period. 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