$1.32 EPS Expected for Microsoft Co. (NASDAQ:MSFT) This Quarter

Analysts predict that Microsoft Co. (NASDAQ:MSFT) will report earnings of $1.32 per share for the current quarter, Zacks reports. Ten analysts have provided estimates for Microsoft’s earnings, with the lowest EPS estimate coming in at $1.30 and the highest estimate coming in at $1.35. Microsoft reported earnings of $1.10 per share during the same quarter last year, which suggests a positive year over year growth rate of 20%. The firm is scheduled to report its next earnings report 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 financial year, analysts forecast that the business will post earnings of $6.01 per share, with EPS estimates ranging from $5.59 to $6.35. Zacks’ earnings per share calculations are an average based on a survey of research firms that that provide coverage for Microsoft.

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

A number of analysts have recently commented on the company. Stifel Nicolaus restated a “buy” rating and issued a $160.00 price target on shares of Microsoft in a report on Monday, November 18th. Citigroup lifted their price target on Microsoft from $152.00 to $155.00 and gave the company a “buy” rating in a research note on Thursday, October 24th. Cleveland Research restated a “buy” rating on shares of Microsoft in a report on Friday, October 18th. BidaskClub raised Microsoft from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, November 13th. Finally, Barclays set a $168.00 target price on shares of Microsoft and gave the stock a “buy” rating in a research report on Friday, November 1st. One equities research analyst has rated the stock with a hold rating, thirty have issued a buy rating and two have assigned a strong buy rating to the company’s stock. Microsoft currently has a consensus rating of “Buy” and a consensus price target of $159.69.

MSFT opened at $151.75 on Friday. The business’s 50-day moving average price is $145.95 and its two-hundred day moving average price is $138.08. Microsoft has a 1 year low of $93.96 and a 1 year high of $152.50. The company has a market capitalization of $1,157.67 billion, a price-to-earnings ratio of 31.95, a P/E/G ratio of 2.37 and a beta of 1.23. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.85 and a quick ratio of 2.81.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 20th will be issued a dividend of $0.51 per share. The ex-dividend date of this dividend is Wednesday, February 19th. This represents a $2.04 annualized dividend and a dividend yield of 1.34%. Microsoft’s dividend payout ratio is currently 42.95%.

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

In other Microsoft news, EVP Jean Philippe Courtois sold 13,074 shares of the stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $141.00, for a total value of $1,843,434.00. Following the transaction, the executive vice president now owns 611,855 shares in the company, valued at $86,271,555. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 40,000 shares of the stock in a transaction that occurred on Tuesday, September 10th. The stock was sold at an average price of $135.25, for a total value of $5,410,000.00. Following the completion of the transaction, the executive vice president now owns 198,042 shares in the company, valued at approximately $26,785,180.50. The disclosure for this sale can be found here. Insiders have sold a total of 80,919 shares of company stock worth $11,197,660 in the last three months. Insiders own 1.39% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MSFT. Webster Bank N. A. increased its holdings in shares of Microsoft by 0.8% in the second quarter. Webster Bank N. A. now owns 125,890 shares of the software giant’s stock worth $16,864,000 after buying an additional 962 shares during the period. UNIVEST FINANCIAL Corp boosted its holdings in Microsoft by 4.5% in the second quarter. UNIVEST FINANCIAL Corp now owns 2,728 shares of the software giant’s stock worth $365,000 after acquiring an additional 117 shares in the last quarter. Fagan Associates Inc. boosted its holdings in Microsoft by 1.2% in the second quarter. Fagan Associates Inc. now owns 97,770 shares of the software giant’s stock worth $13,097,000 after acquiring an additional 1,177 shares in the last quarter. SevenBridge Financial Group LLC grew its stake in shares of Microsoft by 0.6% in the second quarter. SevenBridge Financial Group LLC now owns 65,512 shares of the software giant’s stock worth $8,776,000 after acquiring an additional 412 shares during the last quarter. Finally, Vishria Bird Financial Group LLC grew its stake in shares of Microsoft by 4.7% in the second quarter. Vishria Bird Financial Group LLC now owns 5,411 shares of the software giant’s stock worth $725,000 after acquiring an additional 243 shares during the last quarter. Hedge funds and other institutional investors own 71.83% of the company’s stock.

About Microsoft

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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Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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