Tech giant Microsoft (MSFT) will release its fourth-quarter earnings after the market closes on Tuesday, July 30. Wall Street remains upbeat on MSFT ahead of its Q4 results. MSFT is expected to post revenue of $64.37 billion in Q4, up 15% from $56.19 billion in the prior-year quarter. Also, analysts expect earnings of $2.93 per share, up from $2.69 in the year-ago quarter.
Interestingly, MSFT has an encouraging earnings surprise history. The company exceeded earnings estimates in 13 out of the previous 15 quarters.
Factors Supporting MSFT’s Performance
The company’s robust cloud offerings and innovative AI-driven solutions are expected to be major growth drivers. Additionally, the continued success of Microsoft 365 should contribute to revenue growth in the near term.
According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts highlighted the potential of generative AI to boost Microsoft’s performance across its infrastructure, platforms, and applications.
Options Traders’ Expectations
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 5.21% move in either direction.
What Is the Price Target for MSFT?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT based on 27 unanimous Buys assigned in the past three months. After a year-to-date gain of 13.5%, the analysts’ average price target on Microsoft stock of $507.64 per share implies a 19.37% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
