Zacks: Analysts Expect Microsoft Co. (NASDAQ:MSFT) to Announce $1.32 Earnings Per Share

Equities analysts expect Microsoft Co. (NASDAQ:MSFT) to report earnings per share of $1.32 for the current fiscal quarter, Zacks Investment Research reports. Ten analysts have provided estimates for Microsoft’s earnings, with estimates ranging from $1.30 to $1.35. Microsoft posted earnings per share of $1.10 during the same quarter last year, which would indicate a positive year-over-year growth rate of 20%. The company is scheduled to report its next quarterly earnings results on Wednesday, January 29th.

On average, analysts expect that Microsoft will report full-year earnings of $5.35 per share for the current fiscal year, with EPS estimates ranging from $5.23 to $5.61. For the next fiscal year, analysts anticipate that the firm will post earnings of $6.01 per share, with EPS estimates ranging from $5.59 to $6.35. Zacks’ earnings per share averages are a mean average based on a survey of sell-side research analysts that follow Microsoft.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, October 23rd. The software giant reported $1.38 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.24 by $0.14. The business had revenue of $33.06 billion for the quarter, compared to analyst estimates of $32.24 billion. Microsoft had a net margin of 31.66% and a return on equity of 39.14%. The business’s quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.14 EPS.

Several research firms recently weighed in on MSFT. Piper Jaffray Companies restated an “overweight” rating and set a $158.00 target price on shares of Microsoft in a report on Friday, October 25th. Goldman Sachs Group restated a “buy” rating and set a $151.00 target price on shares of Microsoft in a report on Wednesday, October 23rd. KeyCorp restated a “buy” rating and set a $155.00 target price on shares of Microsoft in a report on Thursday, August 29th. Royal Bank of Canada lifted their target price on shares of Microsoft from $160.00 to $163.00 and gave the company an “outperform” rating in a report on Thursday, October 24th. Finally, Deutsche Bank restated a “buy” rating and set a $160.00 target price on shares of Microsoft in a report on Monday, October 28th. One research analyst has rated the stock with a hold rating, thirty have given a buy rating and two have issued a strong buy rating to the company’s stock. Microsoft has an average rating of “Buy” and a consensus price target of $159.45.

In other news, CAO Frank H. Brod sold 4,000 shares of the business’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $137.17, for a total value of $548,680.00. Following the completion of the sale, the chief accounting officer now owns 54,306 shares of the company’s stock, valued at approximately $7,449,154.02. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Christopher C. Capossela sold 2,500 shares of the business’s stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $144.01, for a total transaction of $360,025.00. Following the completion of the sale, the chief marketing officer now directly owns 118,944 shares of the company’s stock, valued at approximately $17,129,125.44. The disclosure for this sale can be found here. Insiders sold a total of 332,804 shares of company stock valued at $45,823,569 in the last three months. Insiders own 1.39% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. Valmark Advisers Inc. grew its position in shares of Microsoft by 19.4% during the 3rd quarter. Valmark Advisers Inc. now owns 12,439 shares of the software giant’s stock valued at $1,729,000 after buying an additional 2,025 shares during the last quarter. Cetera Investment Advisers grew its position in shares of Microsoft by 6.3% during the 3rd quarter. Cetera Investment Advisers now owns 63,810 shares of the software giant’s stock valued at $8,880,000 after buying an additional 3,778 shares during the last quarter. Financial Architects Inc grew its position in shares of Microsoft by 6.2% during the 3rd quarter. Financial Architects Inc now owns 37,145 shares of the software giant’s stock valued at $5,164,000 after buying an additional 2,172 shares during the last quarter. WT Wealth Management bought a new stake in shares of Microsoft during the 3rd quarter valued at about $607,000. Finally, AllSquare Wealth Management LLC grew its position in shares of Microsoft by 1.9% during the 3rd quarter. AllSquare Wealth Management LLC now owns 6,307 shares of the software giant’s stock valued at $877,000 after buying an additional 118 shares during the last quarter. 72.17% of the stock is owned by institutional investors.

Shares of NASDAQ:MSFT traded up $0.05 during midday trading on Thursday, hitting $150.39. 23,597,500 shares of the company’s stock traded hands, compared to its average volume of 25,135,678. The company has a debt-to-equity ratio of 0.69, a quick ratio of 2.81 and a current ratio of 2.85. The company has a market cap of $1,144.09 billion, a PE ratio of 31.66, a P/E/G ratio of 2.36 and a beta of 1.23. The firm’s fifty day moving average price is $141.82 and its two-hundred day moving average price is $136.07. Microsoft has a twelve month low of $93.96 and a twelve month high of $151.33.

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 21st will be paid a dividend of $0.51 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Wednesday, November 20th. This represents a $2.04 annualized dividend and a yield of 1.36%. Microsoft’s payout ratio is 38.74%.

Microsoft announced that its board has authorized a stock buyback program on Wednesday, September 18th that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the software giant to reacquire up to 3.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Microsoft Company Profile

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.

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