Microsoft Corporation (MSFT) Earnings Preview: What To Focus On - DXC News

38 days have passed by since the last earnings report for Microsoft Corporation (NASDAQ:MSFT) and the new quarterly results look set to arrive in 60 days. The shares of MSFT at the moment are trading at a volume of 36.1 million, which compares with its normal daily standard volume of 24623759 shares. This has led to the shares of the company declining by -3.19%, currently exchanging hands at $133.39 a share. MSFT stock has been up by $8.29 (-5.85%) ever since it reached its 52-week high of $141.68 back in July 26, 2019. It has progressed below its 50-day moving average of $137.39 and is down -2.01% over the past week. The stock has retreated -2.2% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the MSFT share price due for a breakout?

Microsoft Corporation (MSFT) Forecasts And Latest Quarter Earnings

Ahead of their fiscal first-quarter to be released on Thursday, Oct 24, 2019, 30 analysts who are covering the company are estimating that it will record a profit of $1.24 per share, with analysts having different outlooks from $1.18 to $1.32. The current agreed outlook, when compared to the profit recorded last year, is at $1.14 a share, thus an increase of 8.77% is expected. The profit view for a complete financial year for Microsoft Corporation is expected to be around $5.23 in current year, a decline of nearly 10.11% from last year which was $4.75.

Analyzing The Earnings History Of Microsoft Corporation (NASDAQ:MSFT)

In the past few years, the MSFT stock has been known to miss the Wall Street’s earnings projection. The company missed 0% of the time, according to the data pulled on their earnings, was able to meet predictions on 0 occasions and topped expectations 12 times. Looking at the past trend, the price of Microsoft Corporation shares had risen following the release of their earnings in 23 of the last 37 quarters.

Looking back, here is how Microsoft Corporation (MSFT) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of Microsoft Corporation recorded 0.15%, 3.31%, -1.83% and 5.84%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 2.76%, 2.3%, -0.33% and 4.39%. Their post-earnings price movements have resulted in an average increase of 1.87% and an average increase of 2.28% in Microsoft Corporation on next day and 7th day, sequentially. MSFT’s one month stock performance led to its shares declining by -4.85% with a return of 24.59% witnessed over the last 52 weeks.

The higher number of analysts at Reuters has assigned a buy or better ratings (33) on the Microsoft Corporation stock, while 2 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $154.41. This price target implies potential upside of 15.76 percent over the next 12 months based on the current share price.

Microsoft Corporation (MSFT) Post Earnings Announcement Drift (PEAD)

Back on July 18, 2019, Microsoft Corporation (NASDAQ:MSFT) released its Q4 results, in which it recorded EPS of $1.37 that exceeded consensus estimates of $1.21. After the earnings were reported, the price of MSFT stock kicked off the session at $136.45 and remained in a range of $140.22 to $140.67 on the first day. The shares were priced at $136.62 at the close with a total volume of shares being 48987916.

On April 24, 2019, the Q3 earnings report was disclosed with EPS of $1.14. This was above the estimation of $1 per share. The stock price range of MSFT was between $130.06 and $131.37 on the first-day post announcement, after opening the day at $128.83. The session came to close at $129.15 and there was a total volume of 38033892 shares.

January 30, 2019 was the day when its Q2 results were unveiled. The earnings came in at $1.1, beating the projected $1.09 per share. The very next day, MSFT stock opened at $103.18 while staying in a range of $103.8 to $105.22. At the end, it moved to $104.43 a total volume of shares been 55636392.

In the year-ago Q1 earnings on October 24, 2018, the company saw profit per share of $1.14. That was better than the $0.96 analysts had expected. Microsoft Corporation share price started at $106.15 on the first full trading day post-earning and then exchanged hands between $106.55 and $109.27 throughout the session. The closing price of $108.3 came on the back of 61646820 shares in volume.

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