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.
