Microsoft (MSFT): Lower EPS on HSD Gartner PC Decline - Jefferies

Jefferies analyst, John DiFucci, reduced his Microsoft (NASDAQ: MSFT) estimates to reflect Gartner’s latest PC industry forecast which has reduced PC unit expectations to a 7.3% yoy decline in 2016, down from the prior forecast of down 1.5%. This does not account for any future weakness due to potential fallout from the Brexit vote.

FY2016 and FY2017 revenue expectations decreased 0.1% and 0.7%, respectively, while non-GAAP EPS was lowered $0.01 and $0.05 respectively. The analyst's FY17 EPS estimate remains below consensus, at $2.78 vs. the Street’s $2.88.

No change to Underperform rating and $40 price target.

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $48.43 yesterday.

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