Microsoft Corporation Stock Buy Recommendation Reiterated (MSFT)
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- MSFT's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MSFT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.59, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 78.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.72% is above that of the industry average.
- MICROSOFT CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MICROSOFT CORP reported lower earnings of $2.00 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($2.84 versus $2.00).
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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