Microsoft is expected to report earnings on Wednesday 29, and along with Apple, Amazon and Facebook, their earnings can make or break the stock market. Apple has gone straight up since January last year, followed by the Space X equity Tesla. Rocket-shared both of them.
Now, its time for Microsoft with shares risen nearly 20% since their last report on October last year. That`s more than twice as much as the S&P 500 which is impressive for that tech giant. Wall Street analysts predict that Microsoft will report $35,7 billion of revenue and earnings of $1,32 per share.
Microsoft continue to benefit from their cloud business and in addition they have $20 billion annual buybacks/dividends. This is a major reason why they outperformed the market last year. Office 365 and Azure cloud-computing made the stock a winner and investors sent the stock up over 50% last year.
Consensus revenue estimate would represent 9,8% growth compared to the same quarter a year ago. Windows, search ads, Surface and gaming boosted the company`s revenue with $11,13 billion. Cloud computing service Azure and Windows Server, SQL Server, System Center, GitHub and consulting saw $10,85 billion in revenue.
Research firm CFRA estimates that revenue from cloud-based services hit 50% of total revenue in the company`s fiscal Q4, and investors are postive to Microsoft at the moment. The company changed its strategy and are competetive to Amazon in the cloud sector as well.
The stock declined to $162,28 per share on Tuesday, down -1,67%, but Microsoft is the most valuable U.S company after Apple which is number one on the list. Microsoft`s valuation after the drop on Tuesday is $1,24 trillion, while Apple is valued at $1,35 trillion.
Microsfot signed a military cloud contract with Pentagon worth $10 billion. They won the contract in October last year after a long battle with its competitors like Amazon, Oracle and IBM. Earnings strength is very strong and looks good for future earnings growth.
Microsoft is expected to report earnings on Wednesday 29 after the market close.