Brokerages Expect Microsoft Co. (NASDAQ:MSFT) Will Announce Earnings of $1.21 Per Share

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Analysts predict that Microsoft Co. (NASDAQ:MSFT) will report $1.21 earnings per share (EPS) for the current fiscal quarter, according to Zacks Investment Research. Twelve analysts have made estimates for Microsoft’s earnings. The highest EPS estimate is $1.25 and the lowest is $1.18. Microsoft reported earnings of $1.13 per share in the same quarter last year, which indicates a positive year over year growth rate of 7.1%. The company is scheduled to announce its next quarterly earnings report on Thursday, July 18th.

On average, analysts expect that Microsoft will report full-year earnings of $4.58 per share for the current fiscal year, with EPS estimates ranging from $4.54 to $4.62. For the next fiscal year, analysts expect that the company will post earnings of $5.10 per share, with EPS estimates ranging from $4.89 to $5.29. Zacks’ EPS calculations are an average based on a survey of research analysts that cover Microsoft.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, April 24th. The software giant reported $1.14 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.00 by $0.14. The business had revenue of $30.57 billion for the quarter, compared to analysts’ expectations of $29.86 billion. Microsoft had a return on equity of 39.34% and a net margin of 28.58%. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.95 EPS.

Several research analysts have recently weighed in on MSFT shares. JPMorgan Chase & Co. boosted their target price on Microsoft from $125.00 to $145.00 and gave the stock a “buy” rating in a report on Thursday, April 25th. Goldman Sachs Group set a $131.00 target price on Microsoft and gave the stock a “buy” rating in a report on Wednesday, April 24th. Argus lifted their price target on shares of Microsoft to $145.00 and gave the company a “buy” rating in a research report on Monday, April 29th. Mizuho reaffirmed a “top pick” rating and set a $142.00 price target (up previously from $135.00) on shares of Microsoft in a research report on Thursday, April 25th. Finally, UBS Group lifted their price target on shares of Microsoft from $125.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday, April 25th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, twenty-five have issued a buy rating and three have given a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $135.75.

Shares of Microsoft stock traded up $0.13 on Friday, hitting $132.45. 14,285,087 shares of the company were exchanged, compared to its average volume of 26,340,396. The stock has a market cap of $1,007.58 billion, a P/E ratio of 34.14, a P/E/G ratio of 2.31 and a beta of 1.22. Microsoft has a 1-year low of $93.96 and a 1-year high of $134.24. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.97 and a quick ratio of 2.93.

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 12th. Shareholders of record on Thursday, August 15th will be given a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 1.39%. The ex-dividend date of this dividend is Wednesday, August 14th. Microsoft’s payout ratio is 47.42%.

In other Microsoft news, EVP Kathleen T. Hogan sold 15,947 shares of the business’s stock in a transaction that occurred on Monday, June 10th. The stock was sold at an average price of $133.17, for a total value of $2,123,661.99. Following the sale, the executive vice president now owns 202,518 shares of the company’s stock, valued at $26,969,322.06. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, President Bradford L. Smith sold 192,300 shares of the business’s stock in a transaction that occurred on Tuesday, April 30th. The shares were sold at an average price of $130.34, for a total value of $25,064,382.00. Following the completion of the sale, the president now directly owns 754,442 shares in the company, valued at approximately $98,333,970.28. The disclosure for this sale can be found here. In the last three months, insiders sold 216,247 shares of company stock worth $28,204,754. 1.38% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in MSFT. Guardian Investment Management increased its position in shares of Microsoft by 4.2% during the fourth quarter. Guardian Investment Management now owns 30,770 shares of the software giant’s stock worth $3,125,000 after acquiring an additional 1,240 shares during the period. United Capital Management of KS Inc. increased its position in shares of Microsoft by 5.8% during the fourth quarter. United Capital Management of KS Inc. now owns 17,834 shares of the software giant’s stock worth $1,811,000 after acquiring an additional 984 shares during the period. Polen Capital Management LLC increased its position in shares of Microsoft by 0.8% during the third quarter. Polen Capital Management LLC now owns 13,818,601 shares of the software giant’s stock worth $1,580,433,000 after acquiring an additional 114,047 shares during the period. Abner Herrman & Brock LLC increased its position in shares of Microsoft by 1.3% during the fourth quarter. Abner Herrman & Brock LLC now owns 259,088 shares of the software giant’s stock worth $26,316,000 after acquiring an additional 3,234 shares during the period. Finally, Leavell Investment Management Inc. grew its stake in shares of Microsoft by 0.3% during the fourth quarter. Leavell Investment Management Inc. now owns 89,124 shares of the software giant’s stock worth $9,052,000 after purchasing an additional 300 shares in the last quarter. 72.10% of the stock is currently owned by institutional investors.

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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