Microsoft share price falls ahead of second-quarter report

on Jan 26, 2015
Updated: Oct 21, 2019
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Microsoft Corp (NASDAQ:MSFT), the world’s largest software maker, is due to update the market later today on its performance over the second quarter of its fiscal year. According to the current consensus forecasts, the company will report a rise in quarterly sales, but its earnings will have declined.

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The consensus estimate among 30 analysts puts Microsoft’s second-quarter revenue at $26.33 billion, up 7.4 percent from the $24.52-billion seen in the corresponding period a year earlier. The company has managed to beat revenue forecasts for the past five consecutive quarters, thanks to its core businesses generating strong sales. In recent quarters the company has also enjoyed a strong contribution from cloud-based services with its new cloud-centric strategy starting to pay off. In October Microsoft said that it had more than seven million subscribers to Office 365, the web-based version of its famous productivity suite.

In terms of profit, Microsoft is expected to report earnings per share (EPS) of 71 cents for the second quarter, four percent lower than a year earlier. The consensus has been reduced from $0.75 EPS three months ago.
In today’s trading, Microsoft shares were 0.9 percent lower at $46.75, shortly after the opening bell in New York. The company’s market capitalisation currently stands at $385.6 billion.

According to the Financial Times, the 31 analysts offering 12 month price targets for Microsoft Corporation have a median target of $52.00, with a high estimate of $58.00 and a low estimate of $34.00. As of January 24, 2015, the consensus forecast amongst 45 polled investment analysts covering the company suggests that the stock will outperform the market. The same consensus estimate has been maintained since the sentiment of investment analysts improved from “hold” on September 15, 2014, the FT notes.
As of 15:28 GMT, Monday, 26 January, Microsoft Corporation share price is $46.73.

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