Microsoft Inc. is set to report its earnings after the close of the market on Thursday, with the stock currently trading near $391 after hitting a record high near $430.82 in 2024. The company’s stock is known to experience significant moves after reporting earnings, potentially gapping up if the numbers are strong or gapping down if they disappoint. Analysts are expecting Microsoft to report earnings of $2.81 per share on revenue of $60.77 billion, while the unofficial “Whisper number” is slightly higher at $2.91 per share.
Over the last several years, Microsoft has seen steady growth in its earnings, with earnings per share increasing from $5.76 in 2020 to $9.81 in 2023. Looking ahead, analysts predict earnings to continue growing to $11.67 in 2024 and $13.38 in 2025. The stock currently has a price-to-earnings ratio of 37, which is 1.6 times higher than the S&P 500. Technically, the stock is trading around 9% below its 52-week high and is currently below its 50-day moving average. Bulls are hoping for a gap up and rally post-earnings, while bears are anticipating a gap down and fall.
Microsoft Corporation is a global provider of software, services, devices, and solutions. Its Productivity and Business Processes segment includes office, Microsoft Teams, LinkedIn, and Dynamics 365. The Intelligent Cloud segment offers server products and cloud services such as Azure, while the More Personal Computing segment includes Windows, Xbox, and gaming services. The company sells its products through various channels, including OEMs, distributors, resellers, digital marketplaces, online, and retail stores. Microsoft was founded in 1975 and is headquartered in Redmond, Washington.
As investors await Microsoft’s earnings report, it is crucial to observe how the stock reacts to the news. During earnings season, it is essential to focus on how the market and individual companies respond to earnings announcements. It is important to keep losses small and avoid going against the market trend. Microsoft’s stock has been featured on FindLeadingStocks.com, and investors are advised to closely monitor its performance post-earnings for potential investment opportunities.
