Microsoft still has 'more ahead' following 'great year,' says Wells Fargo
Wells Fargo analyst Phil Winslow noted that Microsoft reported EPS and revenue in all segments that was near the high end of guidance and above consensus estimates, citing both strong execution and robust demand. Following the report and guidance on the call from CFO Amy Hood, Winslow raised his FY2020 estimates for revenue and EPS to $140.98B and $5.26 from $139.5B and $5.25, respectively. After what he called "a great year," he thinks "there's more ahead" for Microsoft given that recurring subscription revenue from Azure and Office 365 continue to "grow robustly" and he sees headwinds abating from a declining PC market and the transition to the cloud. Winslow keeps an Outperform rating and $160 price target on Microsoft shares.