No. of Recommendations: 5
cnbc.com - Microsoft msft q3 earningsA solid quarter for sure with EPS rising 20% over last year. I am less confident that earnings can continue to grow at this rate, I think a number closer to 15% is more likely.
Here are some numbers for those interested....
EPS 2.95 +20% vs 2.82
Revenue $61.86 +17% vs 58.3B
Stock $390 +27% vs $368
Valuation (TTM)
Revenue : $236B
EPS : $11.56
Stock : $390
Forecast (Guesses) --> This time next year...
Revenue : $260B
EPS : $13.11
Stock : $415
My "model" assumes a contraction of PE back down to around 30 and a P/S just above 10 (from current levels of 36 and 12.7). MSFT is now my single largest individual holding and I don't think I would trim unless the stock traded well above $450 / share (which is possible - but unlikely) this quarter. My central expectation would be $385 / share at the end of this quarter.
tecmo
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Reference : Stock traded up to $406 after the earnings release.
