Microsoft Corp (NYSE: MSFT) Q2 Earnings Release: Market Insights, Analyst Forecasts, and Technical Analysis

Microsoft Corp. announced that its Q4 FY2024 financial results will be released post-market close today, July 30, 2024, via the Microsoft Investor Relations website. A live earnings call webcast is scheduled for 2:30 p.m. PT.

Market Cap

€2.929 trillion marks Microsoft’s market cap as of July 2024, positioning it as the world’s second-largest company by valuation according to our data.

Dividend Information

This stock boasts a 0.70% dividend yield with an annual dividend of $3.00, paid out quarterly. The payout ratio stands at 25.97%, and the dividend growth rate is an impressive 10.29%, reflecting 19 consecutive years of growth. Investors should note the ex-dividend date is August 15, 2024. Additionally, the buyback yield is -0.11%, while the shareholder yield is 0.60%.

Recent Development At Microsoft CorpMicrosoft and Lumen Technologies collaborate to drive AI advancements and digital transformation for a vast customer base.

Audi integrates enhanced voice control in upcoming models with ChatGPT through Microsoft Azure OpenAI Service.

The Trustworthy and Responsible AI Network grows to assist European healthcare organizations in improving AI quality and safety.

Microsoft and SAP launch joint AI capabilities to spur innovation.

Hitachi and Microsoft strike a significant deal to boost business and social innovation using generative AI.

Q3 Earnings Report Recap

For the three months ending March 31, 2024, the company achieved a 17% Y/Y revenue increase to $61.858 billion, and a 23% boost in operating income to $27.581 billion. Net income rose 20% to $21.939 billion, with diluted EPS up 20% to $2.94. Adjusting for constant currency, these gains remain consistent, underscoring the company’s strong financial performance despite minor currency impacts.

Microsoft’s Copilot and Copilot stack are leading AI transformation, enhancing business outcomes across industries, stated CEO Satya Nadella. CFO Amy Hood added that Microsoft Cloud revenue for the quarter reached $35.1 billion, up 23% Y/Y, driven by effective execution from sales teams and partners.

Q4 Earnings Release forecast

For the current quarter, the Zacks Consensus Estimate for sales is $64.19B, based on 13 projections, with a high of $64.56B and a low of $63.83B, representing a 14.24% year-over-year growth from $56.19B.

Earnings-wise, the Zacks Consensus Estimate is $2.90 from 15 forecasts, with a high and recent consensus of $2.94, and a low of $2.85, showing a 7.81% year-over-year increase from $2.69.

Investing.com indicates that Microsoft Corporation (NASDAQ: MSFT) forecasts a Q4 EPS of $2.94 and revenue of $64.38 billion.

Tradingview.com reports that Microsoft Corporation (NASDAQ: MSFT) anticipates a Q4 EPS of $2.94 and revenue of $64.38 billion.

Technical Analysis

– Microsoft Corporation (NASDAQ: MSFT) faces an uptrend line rejection at $418.20.

– If this rejection holds, the price could rise to $448.47, with a potential further increase to $486.89 if $448.47 is breached.

– If the rejection fails, the price may decline to $394.50, with a possible drop to $375.84 if $394.50 is broken.

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Conclusion

Microsoft Corporation has shown strong recent performance, with a 17% increase in revenue and a 23% rise in operating income in Q3 FY2024. The Q4 forecast reflects continued growth, with estimates of $64.38 billion in revenue and an EPS of $2.94. Technical analysis indicates that the stock is currently facing a resistance at $418.20, with potential for a rise to $448.47 or $486.89 if this level holds, while a failure could see a decline to $394.50 or $375.84. The company’s robust market cap of €2.929 trillion, consistent dividend growth, and strategic partnerships in AI underscore its strong position and optimistic future outlook.

Source:

https://news.microsoft.com/2024/07/16/microsoft-announces-quarterly-earnings-release-date-60/#:~:text=REDMOND%2C%20Wash.,en%2Dus%2FInvestor%2F.

https://www.microsoft.com/en-us/Investor/events/FY-2024/earnings-fy-2024-q4.aspx

https://companiesmarketcap.com/eur/microsoft/marketcap/#google_vignette

https://stockanalysis.com/stocks/msft/dividend/

https://images.app.goo.gl/gyqtv4YAt1u8sCCE7

https://news.microsoft.com/2024/07/24/microsoft-and-lumen-technologies-partner-to-power-the-future-of-ai-and-enable-digital-transformation-to-benefit-hundreds-of-millions-of-customers/

https://www.audi-mediacenter.com/en/press-releases/audi-enhances-voice-control-in-current-and-future-models-with-chatgpt-16068

https://news.microsoft.com/2024/06/16/trustworthy-and-responsible-ai-network-expands-to-help-european-healthcare-organizations-enhance-the-quality-safety-and-trustworthiness-of-ai-in-health/

https://azure.microsoft.com/en-us/blog/unlock-ai-innovation-with-new-joint-capabilities-from-microsoft-and-sap/

https://news.microsoft.com/2024/06/03/hitachi-and-microsoft-enter-milestone-agreement-to-accelerate-business-and-social-innovation-with-generative-ai/

https://www.microsoft.com/en-us/investor/earnings/fy-2024-q3/press-release-webcast