Nomura Expecting A 'Solid' Q1 Out Of Microsoft

Nomura analysts expect Microsoft Corporation MSFT to report robust results for FQ1 2017.

The analysts mentioned that strong performances were especially expected for the Productivity and Business Process division, as well as Intelligent Cloud.

Nomura also expects Microsoft to witness continued single digit declines in its More Personal Computing business, driven by continued PC declines.

Reseller Survey

“Our reseller survey suggested Microsoft came in above plan in the quarter and resellers were positive on the Office 365 model transition,” the analysts stated.

According to the survey, 53 percent of the respondents said that customers were adopting Office 365 at a faster pace than a year ago, while another 42 percent said that customers were adopting Office 365 at a similar pace, year on year.

Positive On Stock

“We are positive on the stock, as we believe the transition to Office 365 is trending ahead of plan, declines in the Windows business are likely to moderate this year, and the company should continue to outperform on the operating expense side of the business,” the analyst added.

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