Nomura Securities Reiterates Buy on Microsoft (MSFT) Following Solid 4Q
Nomura Securities reiterated a Buy rating and $65.00 price target on Microsoft (NASDAQ: MSFT) following the company's 4Q earnings report. Both revenues and EPS beat expectations. Microsoft guided to 1Q17 non-GAAP revenues of $21.2-21.9bn, below Street estimates at $22.2bn.
Analyst Frederick Grieb commented, "Microsoft reported F4Q’16 revenue and non-GAAP EPS of $22.6bn and $0.69, which was above revenue expectations of $22.2bn and above the Street’s EPS of $0.58. We estimate that EPS benefited by about $0.05 due to a lower-than-expected tax rate. Operating expenses were $9.6bn, above guidance of $8.2-8.3bn due to legal settlements and sales costs. Revenue and EPS numbers exclude the impact of Windows 10 deferrals."
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Shares of Microsoft closed at $53.09 yesterday.