市场见解

Why Microsoft shares jumped on Wednesday

Earnings trump estimates, and Microsoft’s guidance is golden.
The post Why Microsoft shares jumped on Wednesday appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of software giant Microsoft (NASDAQ: MSFT) had jumped 4% as of 11:50 a.m. EDT Wednesday after the company reported better-than-expected sales and earnings in its fiscal first-quarter 2022 report last night.

Instead of the $2.07 per share earned on sales of $44 billion that analysts were expecting, Microsoft reported a $2.27 per share adjusted profit on sales of $45.3 billion.

So what

And that wasn’t even the best news. When calculated according to generally accepted accounting principles (GAAP), Microsoft’s earnings actually came in at $2.71 per share for the fiscal first quarter, up 49% year over year — way better than the 25% reported improvement in adjusted profits.

The improvement in earnings was also significantly stronger than Microsoft’s already strong 22% growth in Q1 2022 sales over Q1 2021. Across the board, Microsoft booked improvements in revenue:

Intelligent cloud sales — up 31%.
Productivity and business processes — up 22%.
More personal computing — up 12%.

Now what

And Microsoft plans to keep outperforming expectations in the second quarter, as revealed in the company’s post-earnings conference call, which was covered by TheFly.com.

There, Microsoft confided that it is on course to book revenue between $50.15 billion and $51.05 billion in Q2 — several percentage points faster growth than the $48.9 billion that Wall Street had been forecasting. The results, and the forecast, were good enough to elicit higher stock price targets from a range of Wall Street banks, as analysts from Barclays to Citi to Goldman Sachs hiked their target prices as high as $407 a share on this $324 stock, predicting as much as 25% gains above and beyond what Microsoft is collecting today.

No wonder investors are excited.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Microsoft shares jumped on Wednesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Microsoft right now?

Before you consider Microsoft, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Microsoft wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Microsoft (NASDAQ:MSFT) share price climbs after a record quarterly profit

Why valuation multiples can be ‘useless’ in assessing ASX shares: expert

The best day in 10 months, and Zip’s Microsoft deal. Scott Phillips on Nine’s Late News

Rich Smith has no position in any of the stocks mentioned. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!