Microsoft posted its fiscal third quarter earnings that surpassed analysts’ expectations – in the ninth consecutive quarter.
The software behemoth’s earnings for the quarter came in at $1.95 a share, compared to $1.77 a share expected by analysts polled by FactSet.
Revenue of $41.7 billion also beat estimates of $40.83 billion. Revenue grew at +19% annualized rate – the biggest quarterly growth since 2018. PC sales was a major contributor to growth.
The company said its Azure public cloud grew +50%, faster than the +46% growth analysts had expected, according to a CNBC review of 14 equity research notes. In the prior quarter Azure revenue climbed 50%.
For its fiscal fourth quarter, Microsoft is expecting $43.6 billion to $44.5 billion in revenue, compared to the $42.98 billion consensus estimate of analysts polled by Refinitiv.
MSFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 31 cases where MSFT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MSFT's RSI Indicator exited the oversold zone, of 15 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MSFT turned negative on March 28, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
MSFT moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MSFT crossed bearishly below the 50-day moving average on April 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for MSFT entered a downward trend on April 29, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.245) is normal, around the industry mean (29.955). P/E Ratio (38.386) is within average values for comparable stocks, (155.575). Projected Growth (PEG Ratio) (2.153) is also within normal values, averaging (2.725). Dividend Yield (0.007) settles around the average of (0.081) among similar stocks. P/S Ratio (13.928) is also within normal values, averaging (55.459).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software and harware products
Industry PackagedSoftware