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."

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 $53.09 yesterday.

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