More Squawk from Jim Cramer: Microsoft (MSFT) Had ‘Very Impressive’ Quarter
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are climbing 5.47% to $55.99 on Wednesday morning after the tech giant posted better-than-expected results for the 2016 fiscal fourth quarter.
"It was a remarkable quarter in multiple ways," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
There was "absolutely terrific uptake vs. the previous quarter, which actually I thought was kind of disappointing," Cramer added.
CFO Amy Hood said PC growth was better in the quarter than the company had expected, Cramer noted.
"Why is that important? It confirms what Seagate (STX) said not that long ago when they said things are better, and don't forget Intel (INTC) reports tonight so maybe there's an interesting read-through," Cramer said.
Additionally, Microsoft's cloud computing platform Azure is becoming a serious challenger to Amazon.com's (AMZN) Amazon Web Services, according to Cramer.
Azure revenue grew 102% during the period with Azure compute usage more than doubling year-over-year.
But Cramer noted that the company's proposed acquisition of LinkedIn (LNKD) was barely mentioned on Microsoft's earnings conference call.
After yesterday's closing bell, the Redmond, WA-based company reported adjusted earnings of 69 cents per share, higher than analysts' expectations of 58 cents per share. Revenue was $22.6 billion, while analysts' projected $22.2 billion.
"This was the kind of quarter from Microsoft which I have been looking for, for some time," Cramer stated, adding that they did deliver last quarter and this was a "nice comeback."
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on Microsoft stock.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MSFT