Will Microsoft (MSFT) Stock Rise on ‘Halo 5: Guardians’ Release? - TheStreet

NEW YORK (TheStreet) -- Microsoft Corp. (MSFT) - Get Report released the Halo 5: Guardians, latest installment of the $4.6 billion Halo gaming franchise, on Tuesday.

The game is only available on for Xbox One, the company's gaming console, which could get a boost from the game's exclusivity.

Halo, developed with 343 Industries, began with Halo: Combat Evolved in 2001 and has evolved into a gaming series that has inspired novels, apparel and more.

Microsoft's fiscal 2016 second quarter, which runs until the end of December, is historically the company's best quarter for revenue growth due to the holiday season and key launches of Xbox bundles and games.

Xbox and gaming revenue now fall under the more personal computing segment after the company changed its financial reporting structure in September.

Last week, Microsoft reported revenue for the more personal computing segment fell 17% year-over-year to $9.4 billion for the first quarter of fiscal 2016.

Microsoft stock is falling 0.41% to $54.03 in late morning trading on Tuesday.

Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 1.8% when compared to the same quarter one year prior, going from $4,540.00 million to $4,620.00 million.
  • The gross profit margin for MICROSOFT CORP is currently very high, coming in at 71.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.67% is above that of the industry average.
  • Net operating cash flow has slightly increased to $8,594.00 million or 2.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.64%.
  • You can view the full analysis from the report here: MSFT