Microsoft: Buy The Dip After FQ4 Results

Summary:

  • Microsoft’s FQ4 results beat predictions due to strong performance in the Cloud segment and improvements in the Personal Computing business.
  • The PC market is showing signs of stabilization.
  • Microsoft reported its second consecutive quarter of revenue re-acceleration and free cash flow margins in excess of 30%.
  • Despite a dip in share price lately, Microsoft’s shares have a favorable risk profile.

Microsoft logo

jewhyte

Microsoft (NASDAQ:MSFT) reported results for its fourth fiscal quarter on Wednesday and the firm beat predictions by a good margin, thanks to a strong performance of the Cloud segment as well as easing pain in the Personal Computing business. The

$ Billions

FQ4’23

FQ3’23

FQ2’23

FQ1’23

FQ4’22

Y/Y Growth

Revenues

$56,189

$52,857

$52,747

$50,122

$51,865

8%

Cash Flow From Operating Activities

$28,770

$24,441

$11,173

$23,198

$24,629

17%

Capital Expenditures

($8,943)

($6,607)

($6,274)

($6,283)

($6,871)

30%

Free Cash Flow

$19,827

$17,834

$4,899

$16,915

$17,758

12%

Free Cash Flow Margin

35.3%

33.7%

9.3%

33.7%

34.2%


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *