Microsoft (NASDAQ: MSFT) to Report Fiscal Q3 ’24 Financial Results
Software giant Microsoft (MSFT) is set to release its fiscal Q3 ’24 financial results on Thursday, April 25th, 2024, after the closing bell. Analysts project $2.82 in earnings per share (EPS), $26.2 billion in operating income, and $60.8 billion in revenue for the quarter. These estimates represent year-over-year growth of 15%, 17%, and 15%, respectively.
Microsoft’s valuation remains a topic of concern, as it is currently trading at 30x its expected ’24 EPS, despite its projected 20% growth rate and 15% revenue growth. The company’s earnings results and guidance will be closely scrutinized by investors, especially in light of the recent performance of Meta (META) and IBM (IBM), both of which have faced setbacks in their earnings reports.
Key Areas of Focus
One area of interest for investors will be the impact of AI on Microsoft’s Azure segment. Microsoft has been an early adopter of AI technology, and its contributions to Azure’s growth in recent quarters have been significant. Analysts will be looking for indications of continued AI-driven growth in the upcoming earnings report.
Another topic of importance will be Microsoft’s cash position and the integration of Activision Blizzard, which was acquired in an all-cash deal in October 2023. Microsoft’s cash reserves have declined significantly since the acquisition, so investors will be monitoring the company’s financial flexibility and its ability to fund further growth initiatives.
Technical Analysis
Microsoft’s daily chart shows that the stock has sold off prior to its earnings report and closed approximately $30 below its all-time high. While the stock is oversold on the daily chart, it remains overbought on the weekly chart, indicating potential for further downward pressure if earnings disappoint.
Market Outlook
Given the recent market volatility and the challenges faced by other tech companies, it is likely that investors will take a cautious approach to Microsoft’s earnings results. However, the company’s strong track record of exceeding expectations and its leadership position in AI may provide some support for the stock price.
Disclaimer
This information is provided for educational purposes only and should not be construed as financial advice. Investing involves risk and the potential for loss of capital. Consult a financial professional before making any investment decisions.
