Microsoft Corporation (MSFT) FAM, What To Expect?

Microsoft Corporation (MSFT) FAM, What To Expect?
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Microsoft Corporation (NASDAQ:MSFT) will host the Financial Analyst meeting (FAM) on September 19, and there are a plethora of topics to be discussed. The topics that hold importance at the meeting could be recently announced strategic transformation, the ongoing CEO hunt, the proposed acquisition of Nokia’s devices and services business, the expectation of more detailed guidance, and comments on shareholder return following the announcement a few days back, according to RBC Capital Markets analysts Matthew Hedberg and Robert Breza.

Microsoft Corporation (MSFT) FAM, What To Expect?

Analysts at RBC Capital are looking toward Microsoft for more detailed multi-year expansion strategy that includes the above-mentioned topics. Statements from the company on all the above areas should be well-received as devices and services models are key data points for investors.

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Duration of new buyback plan not known

Microsoft Corporation (NASDAQ:MSFT) increased the latest quarterly dividend and approved a new $40 billion share repurchase program, which replaces the previous $40 billion program that had $3.6 billion remaining and was set to finish on September 30th. There is, however, no word over the duration of the share repurchase program, as the previous one continued for six years, and this plan comes without any exact expiration date. RBC Capital analysts believe that increases in the speed over the previous repurchase program will be positive for the company.

If the entire program were to be executed today, it could add an additional $0.44 to 2014 EPS estimate, all things else being equal, according to analysts.

Microsoft EPS/Revenue estimates lowered

Analysts have lowered their estimates to convey a clearer picture of the impact of Surface/devices on cost of goods sold (COGS) and the effect of depreciation on capital expenditure made in the fiscal year 2013. Analysts have raised COGS expectations but maintained operation expenditure at the same level. For fiscal 2014, revenue is expected to be $81.1 billion from the previous estimate of $80.6 billion, while EPS is now expected at $2.60 from $2.81 previously. For fiscal 2015, revenue/EPS is expected to be $86.2B/$2.84 from $83.9B/$3.01.

Other details of FAM

FAM will start at 4 pm EST/1 pm PST. A list of those who will speak at the meeting includes CEO Steve Ballmer; Chief Financial Officer Amy Hood; and Chief Operating Officer Kevin Turner.

Microsoft Corporation (NASDAQ:MSFT) skipped a financial analyst meeting in 2012, however, decided to take up one this year to discuss its new financial structure and the reorganization plan.

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