Zacks: Analysts Expect Microsoft Co. (MSFT) Will Announce Quarterly Sales of $32.74 Billion

Brokerages expect Microsoft Co. (NASDAQ:MSFT) to post $32.74 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Twelve analysts have provided estimates for Microsoft’s earnings, with the highest sales estimate coming in at $33.30 billion and the lowest estimate coming in at $32.55 billion. Microsoft posted sales of $30.09 billion during the same quarter last year, which suggests a positive year-over-year growth rate of 8.8%. The company is scheduled to report its next earnings report on Thursday, July 18th.

On average, analysts expect that Microsoft will report full-year sales of $124.86 billion for the current year, with estimates ranging from $124.67 billion to $125.43 billion. For the next year, analysts expect that the business will report sales of $138.09 billion, with estimates ranging from $136.67 billion to $139.45 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side research firms that that provide coverage for Microsoft.

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

Several equities analysts have recently commented on the stock. UBS Group set a $125.00 price target on shares of Microsoft and gave the company a “buy” rating in a report on Thursday, January 31st. Goldman Sachs Group set a $131.00 price target on shares of Microsoft and gave the company a “buy” rating in a report on Wednesday, April 24th. Credit Suisse Group set a $125.00 price target on shares of Microsoft and gave the company a “buy” rating in a report on Monday, March 4th. Nomura lowered their price target on shares of Microsoft from $115.00 to $113.00 and set a “buy” rating on the stock in a report on Thursday, January 31st. Finally, KeyCorp restated a “buy” rating and set a $125.00 price target on shares of Microsoft in a report on Tuesday, January 29th. One 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 issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $135.75.

In other Microsoft news, EVP Christopher C. Capossela sold 5,000 shares of the company’s stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $126.02, for a total transaction of $630,100.00. Following the completion of the sale, the executive vice president now directly owns 144,934 shares in the company, valued at $18,264,582.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Christopher C. Capossela sold 3,000 shares of the company’s stock in a transaction dated Friday, May 3rd. The shares were sold at an average price of $128.87, for a total transaction of $386,610.00. The disclosure for this sale can be found here. Insiders sold 238,354 shares of company stock valued at $30,340,221 over the last quarter. 1.38% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in MSFT. Oregon Public Employees Retirement Fund boosted its holdings in Microsoft by 9,587.0% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 169,992,326 shares of the software giant’s stock valued at $1,674,000 after acquiring an additional 168,237,479 shares during the period. Norges Bank bought a new stake in Microsoft during the fourth quarter valued at about $7,728,792,000. Lunia Capital LP boosted its holdings in Microsoft by 9,650.2% during the fourth quarter. Lunia Capital LP now owns 17,036,540 shares of the software giant’s stock valued at $17,037,000 after acquiring an additional 16,861,809 shares during the period. FMR LLC boosted its holdings in Microsoft by 5.2% during the fourth quarter. FMR LLC now owns 254,905,697 shares of the software giant’s stock valued at $25,890,773,000 after acquiring an additional 12,660,256 shares during the period. Finally, Vanguard Group Inc boosted its holdings in Microsoft by 1.6% during the third quarter. Vanguard Group Inc now owns 577,877,949 shares of the software giant’s stock valued at $66,091,902,000 after acquiring an additional 8,820,439 shares during the period. Institutional investors own 73.14% of the company’s stock.

NASDAQ:MSFT traded up $0.59 during trading hours on Friday, hitting $127.49. 819,351 shares of the stock traded hands, compared to its average volume of 26,909,512. The company has a quick ratio of 2.93, a current ratio of 2.97 and a debt-to-equity ratio of 0.70. Microsoft has a fifty-two week low of $93.96 and a fifty-two week high of $131.37. The company has a market cap of $986.11 billion, a P/E ratio of 32.86, a price-to-earnings-growth ratio of 2.25 and a beta of 1.24.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 13th. Investors of record on Wednesday, May 15th will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 1.44%. The ex-dividend date is Wednesday, May 15th. Microsoft’s dividend payout ratio is presently 47.42%.

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.

Read More: Limitations of the P/E Growth ratio

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Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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