- Microsoft reported strong revenue growth (+13%) and increased operating profits (+25%) in its latest Q1 FY24 quarterly results.
- The company's TTM 32.8x P/E gets more reasonable when considering the 16.2% average revenue and EPS growth over the past 5 years.
- Microsoft's scale and profitability make it a promising long-term investment to hold, with potential for increased dividends and share repurchases.
This article discusses Microsoft Corporation's (MSFT) Q1 FY24 quarterly results and its potential for investors. Here's a summary of the key points from the article:
- Microsoft reported strong revenue growth of 13% to $56.5 billion in its latest Q1 FY24 quarterly results.
- Operating profits increased by 25%, reaching $26.9 billion for the quarter.
- The company's operating expenses remained lean, increasing only 1% year-over-year to $13.3 billion.
- Net income for the quarter was $22.3 billion, representing a 27% increase, with diluted earnings per share (EPS) at $2.99, also increasing by 27%.
- Cash flow from operations reached $30.6 billion, a 32% increase, and free cash flows were $20.7 billion for the quarter.
- Microsoft's largest segment, Intelligent Cloud, reported revenues of $24.3 billion, a 19% increase from the previous year.
- Revenue in Productivity and Business Processes was $18.6 billion, a 13% increase, and the More Personal Computing segment saw revenue growth of 3% to $13.7 billion.
