Q4 2024 Microsoft EPS Estimate Trends
Earnings Expectations on the Rise
Microsoft Corporation (MSFT) is expected to report its financial results for the fourth quarter of 2024 after the market closes on April 25, 2024.
Analysts have been closely watching the company's performance in recent quarters, with Microsoft continuing to benefit from strong growth in its cloud computing business and demand for its Windows operating system and Xbox video game console. For Q4 2024, analysts are anticipating continued growth, with many expecting the company to surpass consensus estimates for both revenue and earnings.
EPS Estimates Continue to Climb
According to data compiled by Refinitiv, the consensus estimate for Microsoft's EPS in Q4 2024 currently stands at $2.34 per share. This represents an increase from the previous consensus estimate of $2.31 per share and is significantly higher than the $2.12 per share reported in the same quarter last year.
This upward revision in EPS estimates reflects the growing optimism among analysts that Microsoft will continue to execute well and deliver strong financial results in the coming quarters. Key factors driving this optimism include the company's strong cloud computing offerings, its dominance in the enterprise software market, and its continued investment in research and development.
Valuation Remains Attractive
Despite the recent rise in Microsoft's share price, the company's valuation remains attractive relative to its growth prospects. The stock is currently trading at a forward price-to-earnings (P/E) ratio of around 25x, which is below the average P/E ratio of 27x for the S&P 500 index. This suggests that Microsoft's stock could still have room to run, especially if the company continues to deliver on its earnings expectations.
Key Factors to Watch
Investors will be closely watching Microsoft's Q4 2024 earnings report for updates on several key factors, including:
- Cloud revenue growth
- Windows operating system sales
- Xbox gaming revenue
- Operating expenses
- Guidance for future quarters
Positive updates on these fronts could lead to further upside for Microsoft's stock, while any disappointments could weigh on the share price.
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