- Comparing Revenues, EBIT/EBITDA, and EPS in Q4 and FY2019 to the comparable prior periods, and the most recent earnings estimates from Bloomberg or another source. Please discuss any changes from its prior guidance or analysts’ estimates and reasons for the changes. Breakdown the movements in the above financial metrics by business unit or product line using the firm's reportable segments. Also discuss any major non-recurring events such as acquisitions, divestitures, spin offs. In preparing this assignment, you should use Adjusted EBIT, EBITDA or EPS if the Company issues such data, but explain the reasons for the adjustments. Exclude any non-recurring items, such as impairments, with an explanation of the item and the reason for exclusion.
- Include a chart showing the stock price movement since Oct 1, 2020. Also note the stock price movements in the 1, 3 & 5 days following the earnings release. Discuss reasons for the change (either up or down) after the earnings release. The change in your stock should be compared to the change in the S&P 500 or other relevant benchmark. (please discuss your rationale for using another benchmark). Please characterize the earnings results as either a "surprise" "in line" or a "disappointment". Please discuss whether the stock price movement is consistent with Market Efficiency.
- Discuss the company's guidance for Q1, and FY2020, and any changes from its prior guidance or analyst estimates, using ranges and midpoints. Please discuss any known
catalysts for upside or any known risks for downside performance compared to estimates. For example, MSFT's cloud business has been growing rapidly and its guidance incorporates a growth rate for this business unit; nevertheless, you may believe that it will grow faster or slower. You should also whether the market is giving the company full credit or too much credit for its growth.
- Discuss questions raised by analysts on the Company's conference call. (Include an attachment summarizing all the questions asked on the call noting by which analyst). Why was the question asked?
Sample Solution