Active Movers: Microsoft Corporation (NASDAQ: MSFT) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release

On Thursday, Shares of Microsoft Corporation (NASDAQ: MSFT) showed the bearish trend with a lower momentum of -1.94% and ended its trading session at $280.81. The company traded total volume of 29,397,978 shares as contrast to its average volume of 36.14M shares. The company has a market value of $2163.80B and about 7.50B shares outstanding. Wall Street expects a year-over-year increase in earnings on higher revenues when Microsoft (MSFT) reported results for the quarter ended March 2022. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 26. On the other hand, if they miss, the stock may move lower.

While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 0.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core.

The Company offered net profit margin of 38.50% while its gross profit margin was 68.80%. ROE was recorded as 48.40% while beta factor was 0.93. The stock, as of recent close, has shown the weekly downbeat performance of -2.37% which was maintained at -16.51% in this year.

About Jessica Larson

I am Jessica Larson Senior News Writer for alphafinstocks.com. I covers TECHNOLOGY sector and writes about hot Financial companies from an exclusive and “out of the box” perspective. Over the 7.0 years, I have built a network of resources within the financial sector I writes about. I hold MS degree in the field of Finance. My most recent work incorporates a promoting article on the portable site plan that objectives organizations hoping to make their sites amicable to versatile clients. The greater part of my articles mixes some type of examination with the composition process itself. I work on a full-time basis for Alpha FinStocks Update specializing in quicker moving active shares with a short-term view on investment opportunities and trends. I have been active in the markets for some years, and I mainly focused on long/short equities. Exceptionally qualified Senior Business Writer with over 7.00 years of showed involvement in marketable strategies and awards.

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