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