Microsoft Q4 FY2022 Earnings Preview: What to Look For

Tiger Newspress2022-07-20

Microsoft Corp. will publish fiscal year 2022 fourth-quarter financial results after the close of the market on Tuesday, July 26, 2022.

Previous Quarter Review

Microsoft last released its quarterly earnings results on Tuesday, April 26th. The software giant reported $2.22 earnings per share for the quarter, beating analysts' consensus estimates of $2.18 by $0.04.

The business had revenue of $49.36 billion for the quarter, compared to the consensus estimate of $49.05 billion.

Microsoft had a return on equity of 44.85% and a net margin of 37.63%. The company's revenue for the quarter was up 18.4% on a year-over-year basis.

During the same quarter last year, the business posted $1.95 earnings per share. On average, analysts expect Microsoft to post $9 EPS for the current fiscal year and $11 EPS for the next fiscal year.

Revenue Forecast Reduced & Structural Adjustment

Microsoft recently updated its guidance for the June quarter to reflect higher pressure fromforeign exchange rates. The company reduced its revenue forecast by $460 million and earnings per share outlook by 3 cents.

Microsoft also laid off around 1800 employees from their different branches across several regions. The company claimed this move to be a part of its structural adjustments. Microsoft stated that it cut off some jobs that realigned business groups and roles after the end of their fiscal year on June 30. The company, however, comforted the aspirants by saying that they would continue to hire new employees and finish the complete the current fiscal year with an increased headcount.

Analyst Opinions

Several equities analysts recently commented on MSFT shares.

KeyCorp reduced their target price on shares of Microsoft from $373.00 to $330.00 and set an "overweight" rating on the stock in a report on Thursday, July 7th.

Wedbush decreased their price objective on Microsoft from $375.00 to $340.00 and set an "outperform" rating on the stock in a report on Wednesday, April 27th.

UBS Group set a $330.00 price target on Microsoft in a research report on Monday, June 20th.

Jefferies Financial Group lowered their price objective on Microsoft from $325.00 to $320.00 in a research report on Monday, June 13th.

Finally, Royal Bank of Canada set a $380.00 target price on shares of Microsoft in a report on Thursday, May 19th.

One research analyst has rated the stock with a hold rating and thirty have assigned a buy rating to the company's stock.

Based on data from MarketBeat.com, Microsoft currently has a consensus rating of "Moderate Buy" and a consensus price target of $349.53.

Consensus Estimate

This software maker is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +5.5%.

Revenues are expected to be $52.28 billion, up 13.3% from the year-ago quarter.

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Comments

  • Steadyhoo
    2022-07-25
    Steadyhoo
    Looking forward to Tue's report
  • Tyk23
    2022-07-25
    Tyk23
    Ok
  • DMan
    2022-07-25
    DMan
    Will this be a good one?
  • FattyBull
    2022-07-25
    FattyBull
    Nice
  • KH321
    2022-07-25
    KH321
    OK 
  • N00b
    2022-07-25
    N00b
    Ok like 
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