What to Expect When Microsoft (MSFT) Reports Q4 Earnings Tuesday
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are up 0.54% to $53.99 in mid-afternoon trading, as the company is expected to report its fiscal 2016 fourth quarter earnings and revenue after the market close on Tuesday.
Microsoft is projected to report a a year-over-year drop in earnings per share and in revenue.
Analysts surveyed by Thomson Reuters are looking for earnings of 58 cents per share on revenue of $22.145 billion for the fourth quarter. A year ago the company reported earnings of 62 cents per share on revenue of $22.180 billion for the same quarter.
Fourth quarter expectations appear "reasonable relative to seasonal norms for most software names, though [third quarter] estimates imply some risk, especially when considering the uncertainty of Brexit," Jefferies said in a note released earlier today.
Microsoft is a Redmond, WA-based technology company known for its Microsoft Windows software products.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate MICROSOFT CORP as a Buy with a ratings score of B+. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
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