Microsoft Fourth Quarter Earnings Preview

July 16, 2012 | Filed Under » ,
Tickers in this Article » MSFT
Analysts are expecting a drop in profit for Microsoft (Nasdaq:MSFT) when it reports its results for the fourth quarter on Thursday, July 19, 2012. The company reported profit of 69 cents a year ago, but the current consensus estimate anticipates earnings per share of 63 cents.



A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Can Earnings Guidance Accurately Predict The Future?

What to Expect: Analysts are anticipating that Microsoft will report earnings of 63 cents per share, down 8.7% from a year ago, when the company reported earnings of 69 cents per share.

The consensus estimate is down from 65 cents three months ago, but it hasn't changed in the last month. Analysts are projecting earnings of $2.69 per share for the fiscal year.

Revenue is expected to exceed last year's figure of $17.37 billion by 4.5% and come in at $18.14 billion for the quarter. The anticipated revenue for the fiscal year is $73.78 billion.



Company Performance: In the past four quarters, revenue has shown consistent growth. It rose 6% in the third quarter, 4.7% in the second quarter, 7.3% in the first quarter and 8.3% in the fourth quarter of the last fiscal year.

The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Understanding The P/E Ratio



Since April 17, 2012, the stock price has dipped 6.5% to $29.39 from $31.44. Microsoft's worst recent stretch was when its stock price fell $2.10 per share between May 7, 2012 and June 4, 2012.





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