Microsoft Co. (MSFT) Expected to Post Quarterly Sales of $32.21 Billion

Wall Street analysts predict that Microsoft Co. (NASDAQ:MSFT) will report sales of $32.21 billion for the current quarter, according to Zacks. Twelve analysts have made estimates for Microsoft’s earnings. The lowest sales estimate is $30.25 billion and the highest is $32.94 billion. Microsoft reported sales of $28.92 billion during the same quarter last year, which indicates a positive year-over-year growth rate of 11.4%. The firm is expected to report its next quarterly earnings results on Wednesday, January 30th.

According to Zacks, analysts expect that Microsoft will report full-year sales of $123.13 billion for the current fiscal year, with estimates ranging from $114.16 billion to $125.18 billion. For the next year, analysts forecast that the firm will post sales of $135.68 billion, with estimates ranging from $121.43 billion to $140.82 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of research firms that follow Microsoft.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 24th. The software giant reported $1.14 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.96 by $0.18. Microsoft had a net margin of 16.38% and a return on equity of 39.86%. The firm had revenue of $29.08 billion for the quarter, compared to the consensus estimate of $27.92 billion. During the same period last year, the firm posted $0.84 EPS. Microsoft’s quarterly revenue was up 18.5% compared to the same quarter last year.



A number of research firms have commented on MSFT. Wells Fargo & Co restated a “buy” rating and set a $130.00 price target on shares of Microsoft in a research report on Thursday, September 27th. Stifel Nicolaus boosted their price target on shares of Microsoft from $107.00 to $118.00 and gave the stock a “buy” rating in a research report on Friday, July 20th. Sanford C. Bernstein set a $135.00 price target on shares of Microsoft and gave the stock a “buy” rating in a research report on Friday, July 20th. Bank of America boosted their price target on shares of Microsoft from $123.00 to $130.00 and gave the stock a “buy” rating in a research report on Tuesday, July 17th. Finally, Atlantic Securities set a $130.00 price target on shares of Microsoft and gave the stock a “buy” rating in a research report on Friday, July 20th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, thirty-three have given a buy rating and two have issued a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus target price of $121.88.

Shares of MSFT stock traded down $1.34 during midday trading on Friday, reaching $106.96. 55,479,996 shares of the company were exchanged, compared to its average volume of 36,104,872. Microsoft has a 12 month low of $80.70 and a 12 month high of $116.18. The company has a market capitalization of $823.57 billion, a price-to-earnings ratio of 27.57, a price-to-earnings-growth ratio of 1.99 and a beta of 1.28. The company has a current ratio of 2.92, a quick ratio of 2.86 and a debt-to-equity ratio of 0.88.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 13th. Stockholders of record on Thursday, November 15th will be paid a $0.46 dividend. The ex-dividend date of this dividend is Wednesday, November 14th. This represents a $1.84 annualized dividend and a dividend yield of 1.72%. This is a boost from Microsoft’s previous quarterly dividend of $0.42. Microsoft’s payout ratio is currently 43.30%.

In other news, CEO Satya Nadella sold 328,000 shares of Microsoft stock in a transaction that occurred on Friday, August 10th. The shares were sold at an average price of $109.44, for a total value of $35,896,320.00. Following the transaction, the chief executive officer now owns 778,596 shares of the company’s stock, valued at approximately $85,209,546.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Amy Hood sold 118,000 shares of Microsoft stock in a transaction that occurred on Tuesday, September 4th. The stock was sold at an average price of $110.90, for a total transaction of $13,086,200.00. Following the completion of the transaction, the chief financial officer now directly owns 669,327 shares in the company, valued at approximately $74,228,364.30. The disclosure for this sale can be found here. Insiders sold a total of 853,460 shares of company stock worth $92,965,482 in the last ninety days. Corporate insiders own 1.49% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. Woodard & Co. Asset Management Group Inc. ADV increased its position in shares of Microsoft by 90.5% in the third quarter. Woodard & Co. Asset Management Group Inc. ADV now owns 1,048 shares of the software giant’s stock worth $119,000 after acquiring an additional 498 shares in the last quarter. Peak Capital Management LLC purchased a new position in shares of Microsoft in the second quarter worth approximately $107,000. Quattro Financial Advisors LLC purchased a new position in shares of Microsoft in the third quarter worth approximately $132,000. Fort L.P. purchased a new position in shares of Microsoft in the second quarter worth approximately $119,000. Finally, WP Advisors LLC purchased a new position in shares of Microsoft in the second quarter worth approximately $131,000. 71.91% of the stock is currently owned by institutional investors and hedge funds.

About Microsoft

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.

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