Microsoft Corp MSFT shares are trading higher Wednesday after the company reported financial results and issued strong guidance. Several analysts also adjusted price targets on the stock following the report.
Microsoft said fiscal fourth-quarter revenue jumped 12% year-over-year to $51.9 billion, which missed the estimate of $52.47 billion, according to data from Benzinga Pro. The company reported earnings of $2.23 per share in the quarter, which missed the estimate of $2.30 per share.
"In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year," said Amy Hood, executive vice president and CFO of Microsoft.
The stock initially traded lower in after hours Tuesday, but it staged a reversal following an upbeat outlook from Microsoft on the conference call. Microsoft said it continues to expect "double digit revenue and operating income growth."
- Citigroup maintained Microsoft with a Buy rating and lowered the price target from $330 to $300.
- BMO Capital maintained Microsoft with an Outperform rating and raised the price target from $305 to $320.
- Wedbush maintained Microsoft with an Outperform rating and lowered the price target from $340 to $320.
- JPMorgan maintained Microsoft with an Overweight rating and lowered the price target from $320 to $305.
- Deutsche Bank maintained Microsoft with a Buy rating and lowered the price target from $350 to $330.
MSFT Price Action: Microsoft has a 52-week high of $338 and a 52-week low of $241.51.
The stock was up 2.97% at $259.26 at press time.
Photo: courtesy of Microsoft.
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