December 4, 2017

MSFT – Market expectations are for improving Uniform ROA, and management is confident about gross margins and Azure


  • Microsoft Corporation (MSFT:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 21.0x UAFRS-based P/E, implying fairly bullish expectations for the firm. Additionally, management is confident about gross margins and Azure
  • Specifically, management is confident that growth in Azure’s premium services are driving gross margin improvement, and that increasing sales mix of higher-margin products and services, as well as improving cloud margins, more than offset the growing mix of cloud revenues
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