Microsoft (MSFT) Set to Announce Quarterly Earnings on Wednesday

Microsoft (NASDAQ:MSFT - Get Free Report) is scheduled to post its quarterly earnings results after the market closes on Wednesday, October 30th. Analysts expect Microsoft to post earnings of $3.08 per share for the quarter. Microsoft has set its Q1 2025 guidance at EPS.Persons interested in listening to the company's earnings conference call can do so using this link.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Tuesday, July 30th. The software giant reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.90 by $0.05. Microsoft had a return on equity of 35.95% and a net margin of 35.96%. The business had revenue of $64.73 billion for the quarter, compared to analysts' expectations of $64.38 billion. During the same quarter last year, the firm earned $2.69 earnings per share. The business's revenue was up 15.2% on a year-over-year basis. On average, analysts expect Microsoft to post $13 EPS for the current fiscal year and $15 EPS for the next fiscal year.

Microsoft Trading Up 0.2 %

Shares of MSFT stock traded up $0.98 during mid-day trading on Wednesday, reaching $428.49. The company's stock had a trading volume of 6,869,464 shares, compared to its average volume of 20,229,232. Microsoft has a 12-month low of $326.94 and a 12-month high of $468.35. The firm has a market capitalization of $3.18 trillion, a PE ratio of 37.17, a price-to-earnings-growth ratio of 2.22 and a beta of 0.90. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.16. The company's 50 day simple moving average is $420.17 and its 200-day simple moving average is $424.56.

Microsoft announced that its board has approved a stock buyback program on Monday, September 16th that allows the company to repurchase $60.00 billion in shares. This repurchase authorization allows the software giant to purchase up to 1.9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its stock is undervalued.

Microsoft Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 21st will be issued a $0.83 dividend. This is an increase from Microsoft's previous quarterly dividend of $0.75. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.77%. The ex-dividend date is Thursday, November 21st. Microsoft's payout ratio is presently 28.74%.

Insider Buying and Selling

In related news, insider Bradford L. Smith sold 40,000 shares of the company's stock in a transaction dated Monday, September 9th. The shares were sold at an average price of $402.59, for a total value of $16,103,600.00. Following the completion of the sale, the insider now directly owns 544,847 shares of the company's stock, valued at $219,349,953.73. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, CMO Takeshi Numoto sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total value of $1,027,600.00. Following the transaction, the chief marketing officer now owns 50,000 shares of the company's stock, valued at approximately $20,552,000. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Bradford L. Smith sold 40,000 shares of the business's stock in a transaction on Monday, September 9th. The stock was sold at an average price of $402.59, for a total value of $16,103,600.00. Following the sale, the insider now owns 544,847 shares in the company, valued at approximately $219,349,953.73. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 190,629 shares of company stock valued at $77,916,485. 0.03% of the stock is owned by insiders.

Institutional Trading of Microsoft

A hedge fund recently raised its stake in Microsoft stock. Ironwood Wealth Management LLC. increased its holdings in shares of Microsoft Co. (NASDAQ:MSFT - Free Report) by 0.3% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 12,658 shares of the software giant's stock after purchasing an additional 38 shares during the quarter. Microsoft accounts for 1.7% of Ironwood Wealth Management LLC.'s holdings, making the stock its 22nd biggest position. Ironwood Wealth Management LLC.'s holdings in Microsoft were worth $5,658,000 as of its most recent SEC filing. 71.13% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Citigroup decreased their price objective on shares of Microsoft from $500.00 to $497.00 and set a "buy" rating on the stock in a report on Wednesday. Wedbush reissued an "underperform" rating on shares of Microsoft in a report on Friday, October 18th. TD Cowen upped their price objective on shares of Microsoft from $470.00 to $495.00 and gave the stock a "buy" rating in a research report on Thursday, July 18th. Morgan Stanley reiterated an "overweight" rating and set a $506.00 price objective on shares of Microsoft in a research report on Tuesday, September 17th. Finally, BMO Capital Markets raised their price objective on shares of Microsoft from $465.00 to $500.00 and gave the company an "outperform" rating in a research note on Friday, July 12th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and twenty-eight have assigned a buy rating to the company's stock. According to MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus target price of $495.58.

About Microsoft

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.