Microsoft Corporation (NASDAQ:MSFT) is projected to declare fiscal third quarter financial results right before the stock market’s official open on April 27, 2017. The stock added about 1 percent in price since last results when it was at $64.27 a share. Based on the most relevant past-periods data, there is an 59.26 percent probability for this firm’s share price to go up following next quarterly results. Earnings reaction history tells us that the equity price moved up 16 times out of last 27 reported quarters. It has beaten earnings-per-share estimates 83% of the time in its last 12 earnings reports. It fell short of earnings estimates on 2 occasions, and it has met expectations 0 time.
Here’s how traders responded to MSFT earnings announcements over the past few quarters.
Microsoft Corporation (MSFT) Earnings Surprises & Reaction
Given its history, the average earnings announcement surprise was 8.55 percent over the past four quarters. Back on January 26, 2017, it posted earnings per-share earnings at $0.83 which beat the consensus $0.79 projection (positive surprise of5.06%. For the quarter, revenue came in at 25.84B versus consensus estimate of 25.28B. The stock gained 2.35 percent the session following the earnings reports were released, and on 7th day price change was -1.71 percent.
On October 20, 2016, it reported earnings at $0.76 a share compared with the consensus estimate of $0.68 per share (positive surprise of 11.76%). Revenue of 22.33B for that quarter was above the $21.71B analysts had expected. The stock climbed 4.22% the day following the earnings announcement, and on 7th day price change was 4.98%.
On July 19, 2016, it recorded $0.69 a share in earnings which topped the consensus estimate of $0.58 (positive surprise of 18.97%). Revenue for the quarter was $22.64B while analysts called for revenues to be $22.15B. The stock gained 5.32% the day following the earnings data was made public, and on 7th day price change was 6.93%.
On April 21, 2016, it announced earnings per share at $0.62 versus the consensus estimate of $0.63 per share (negative surprise of -1.59%). That came on revenues of $22.08B for that period. Analysts had expected $22.09B in revenue.
Microsoft Corporation Earnings Estimates
As Q3 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.77. The analysts’ present consensus range is $0.68-$0.83 for EPS. The market consensus range for revenue is between $23.68B and $24.87B, with an average of $24.28B.
Microsoft Corporation (NASDAQ:MSFT) last ended at $64.71, sending the company’s market cap near $500.05B. The consensus 12-month price target from analysts covering the stock is $69.42. The share price has declined -1.23% from its top level in 52 weeks and dropped 4.77% this year. It recently traded in a range of $64.57-$65.19 at a volume of 19556060 shares. The recent trading ended with the price nearly 0.68 higher for the last 5 trading days, rebounding 37.28% from its 52-week low.