5 A bearish forecast is one that is below the consensus average and shows a deterioration...
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5 A bearish forecast is one that is below the consensus average and shows a deterioration in trends. 7 B Microsoft recently issued a press release saying that it would not meet prior guidance for FQ3/March 2020. 9 "On Jan. 29, as part of our second quarter of fiscal year 2020 earnings call, we issued quarterly revenue guidance for our More Personal Computing segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China. Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call. As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged." You are 'bearish' and have great concerns that these negative trends will persist. What is the best choice of growth rates to demonstrate the most negative outlook? Choose the number closest to your forecast. You decide to stick your neck out and make a major call on Microsoft's stock. Implement a very negative forecast below expectations. Here, you expect Gross Margins to decline and OpEx to be lower, as the company cuts back in its spending. Use the SFAM 'Income Statement(GAAP)' and insert these forecasts into the yellow forecast boxes in column AH for 2020E. Revenue Growth Gross Margins OpEx Percent of Revenues 10% 62% 33% Are your EBIT margins higher or lower than in the Bullish forecast above (Row 100)? What is your EPS forecast? Please choose the closest figure for Fully Diluted Earnings per Share in the 'Income Statement (GAAP)' Sheet. 5 A bearish forecast is one that is below the consensus average and shows a deterioration in trends. 7 B Microsoft recently issued a press release saying that it would not meet prior guidance for FQ3/March 2020. 9 "On Jan. 29, as part of our second quarter of fiscal year 2020 earnings call, we issued quarterly revenue guidance for our More Personal Computing segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China. Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call. As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged." You are 'bearish' and have great concerns that these negative trends will persist. What is the best choice of growth rates to demonstrate the most negative outlook? Choose the number closest to your forecast. You decide to stick your neck out and make a major call on Microsoft's stock. Implement a very negative forecast below expectations. Here, you expect Gross Margins to decline and OpEx to be lower, as the company cuts back in its spending. Use the SFAM 'Income Statement(GAAP)' and insert these forecasts into the yellow forecast boxes in column AH for 2020E. Revenue Growth Gross Margins OpEx Percent of Revenues 10% 62% 33% Are your EBIT margins higher or lower than in the Bullish forecast above (Row 100)? What is your EPS forecast? Please choose the closest figure for Fully Diluted Earnings per Share in the 'Income Statement (GAAP)' Sheet.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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