All eyes will be on MSFT stock after today’s close as investors are gearing up for the company’s latest quarterly report. Analysts expect the software giant to report Q316 earnings per share of $0.64 and revenue of $22.09 billion. That would be $0.14 lower the $0.78 per share posted last quarter, and $0.02 higher the $0.62 posted in the Q315. Revenue is projected to be $1.69 billion higher than the $20.4 billion posted in the same period a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $0.68 per share.
As a quick reminder, Microsoft (MSFT) reported Q216 EPS of $0.78, $0.07 better than the Street’s consensus estimate of $0.71. Revenue declined 3.02% on a year-over-year basis to $25.7 billion versus the $25.26 billion consensus. It is worth noting that during the last quarter, revenue in Microsoft’s cloud business grew 5% to $6.34 billion, topping Wall Street’s expectations for $6.29 billion. It will be interesting to see how Msoft’s cloud segment has performed this reporting quarter.
MSFT Stock Share Performance
MSFT is currently printing a normal trading volume with the issue trading 10.84 million shares, compared to the average volume of 26.02 million. The stock began trading this morning at $55.58 to currently trade 0.74% higher from the prior days close of $55.59. On an intraday basis it has gotten as low as $55.42 and as high as $56.15.
On valuation metrics, Microsoft Corp. shares are priced at 39.63x this year’s forecasted earnings, compared to the industry’s 16.23x earnings multiple. The company’s current year and next year EPS growth estimates stand at 11.80% and 10.50%, compared to the industry growth rates of 11.30% and 23.30%, respectively. MSFT stock has a t-12 price-to-sales ratio of 4.99. EPS for the same period registers at $1.41.
Microsoft shares have advanced 3.21% in the last 4 weeks and 10.24% in the past three months. Over the past 5 trading sessions the stock has gained 0.43%. The Redmond, Washington-based company, currently valued at $442.88 billion, has a median Street price target of $60 with a high target of $70.
Microsoft Corp. is up 33.93% year-over-year, compared with a 0.50% loss in the S&P 500.