Get ready for Microsoft’s first-quarter earnings report, set to drop after the closing bell on Wednesday, October 30th. The tech giant is anticipated to deliver strong numbers, with analysts predicting earnings of $3.10 per share, a considerable jump from $2.73 in the same period last year. Revenue is projected to reach $64.51 billion, a significant increase from $49.66 billion in the year-ago quarter. These estimates, based on data from Benzinga Pro, point towards a robust quarter for Microsoft.
However, Microsoft is navigating a complex landscape as it faces antitrust concerns related to its cloud computing business. The company recently accused Google, a subsidiary of Alphabet, of engaging in covert lobbying campaigns designed to undermine its cloud computing services while simultaneously seeking to deflect attention from its own regulatory challenges. This ongoing rivalry is likely to be a point of discussion during the earnings call.
Despite the regulatory challenges, Microsoft’s stock has performed well recently. Shares closed at $431.95 on Tuesday, gaining 1.3% on the day. Investors appear optimistic about the company’s future prospects, particularly in its cloud computing segment.
To gauge investor sentiment and potential market reactions, it’s essential to consider analyst opinions. Here’s a snapshot of recent analyst ratings on Microsoft:
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Joel Fishbein, Truist Securities:
Maintained a Buy rating with a price target of $600 (73% accuracy rate).*
Mark Moerdler, Bernstein:
Maintained an Outperform rating, lowering the price target from $501 to $500 (71% accuracy rate).*
Tyler Radke, Citigroup:
Maintained a Buy rating, decreasing the price target from $500 to $497 (69% accuracy rate).*
Jackson Ader, Keybanc:
Upgraded the rating to Overweight, raising the price target from $490 to $505 (64% accuracy rate).*
Brent Bracelin, Piper Sandler:
Maintained an Overweight rating, reducing the price target from $485 to $470 (74% accuracy rate).These analysts generally maintain a positive outlook on Microsoft, with several suggesting price target increases. This positive sentiment aligns with the company’s strong growth trajectory in the cloud computing space.
As Microsoft prepares to release its earnings results, investors will be keen to understand the company’s revenue growth, profit margins, and future outlook in the face of regulatory scrutiny. The upcoming earnings call is expected to provide valuable insights into Microsoft’s performance and its position within the ever-evolving tech landscape.
