William Blair Weighs in on Microsoft Co.’s Q3 2019 Earnings (MSFT)

Microsoft Co. (NASDAQ:MSFT) – Equities researchers at William Blair lowered their Q3 2019 earnings per share (EPS) estimates for shares of Microsoft in a research note issued on Thursday, October 25th. William Blair analyst J. Ader now anticipates that the software giant will post earnings per share of $1.00 for the quarter, down from their previous forecast of $1.04. William Blair also issued estimates for Microsoft’s Q4 2019 earnings at $1.19 EPS.

MSFT has been the topic of several other reports. Barclays boosted their target price on Microsoft from $117.00 to $120.00 and gave the company a “buy” rating in a research note on Friday, September 7th. Oppenheimer set a $127.00 target price on Microsoft and gave the company a “buy” rating in a research note on Monday, October 1st. Credit Suisse Group set a $125.00 target price on Microsoft and gave the company a “buy” rating in a research note on Tuesday, October 2nd. Wells Fargo & Co restated a “buy” rating and issued a $130.00 target price on shares of Microsoft in a research note on Thursday, September 27th. Finally, Nomura set a $115.00 price target on Microsoft and gave the company a “buy” rating in a research report on Thursday, October 25th. One equities research 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. Microsoft presently has an average rating of “Buy” and a consensus target price of $121.88.



Shares of MSFT opened at $103.73 on Monday. The firm has a market capitalization of $823.57 billion, a price-to-earnings ratio of 26.73, a PEG ratio of 1.95 and a beta of 1.28. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.85 and a current ratio of 2.92. Microsoft has a 1 year low of $80.70 and a 1 year high of $116.18.

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

A number of institutional investors have recently bought and sold shares of MSFT. Woodard & Co. Asset Management Group Inc. ADV boosted its holdings in shares of Microsoft by 90.5% in the 3rd quarter. Woodard & Co. Asset Management Group Inc. ADV now owns 1,048 shares of the software giant’s stock worth $119,000 after purchasing an additional 498 shares in the last quarter. Peak Capital Management LLC purchased a new position in shares of Microsoft in the 2nd quarter worth about $107,000. Quattro Financial Advisors LLC purchased a new position in shares of Microsoft in the 3rd quarter worth about $132,000. Fort L.P. purchased a new position in shares of Microsoft in the 2nd quarter worth about $119,000. Finally, WP Advisors LLC purchased a new position in shares of Microsoft in the 2nd quarter worth about $131,000. Institutional investors and hedge funds own 71.92% of the company’s stock.

In related news, EVP Kathleen T. Hogan sold 40,000 shares of the business’s stock in a transaction dated Tuesday, September 4th. The stock was sold at an average price of $111.31, for a total transaction of $4,452,400.00. Following the completion of the transaction, the executive vice president now directly owns 339,972 shares in the company, valued at $37,842,283.32. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Satya Nadella sold 203,418 shares of the business’s stock in a transaction dated Friday, October 26th. The stock was sold at an average price of $106.68, for a total value of $21,700,632.24. Following the transaction, the chief executive officer now owns 1,014,247 shares of the company’s stock, valued at $108,199,869.96. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 853,460 shares of company stock valued at $92,965,482. 1.38% of the stock is owned by company insiders.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 13th. Investors of record on Thursday, November 15th will be given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 1.77%. This is a boost from Microsoft’s previous quarterly dividend of $0.42. The ex-dividend date is Wednesday, November 14th. Microsoft’s payout ratio is presently 43.30%.

Microsoft Company Profile

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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Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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