Rancakmedia.com – Microsoft shareholders sell or buy Microsoft shares before future earnings, here's how to buy and sell Microsoft shares that you can do, before discussing the point, see some of the information below.
Earnings that can be distributed to Microsoft shareholders after the bell on January 25, 2022, Microsoft (MSFT) is expected to report its financial earnings for the second quarter of fiscal 2022.
Consensus earnings per share (EPS) was $2.32, slightly ahead of the normalized Q1 FY22 actual earnings of $2.27 . Earnings per share during the first quarter of fiscal year 22 exceeded expectations by $0.19.
Revenue is expected to come in at just over $50 billion in Q2 FY22, ahead of the $45.3 billion achieved in Q1 FY22. Since its inception, Microsoft has consistently outperformed earnings and EPS expectations, as spotted by Seeking Alpha's handy earnings surprise tracker.
Microsoft MSFT Shareholder Key Metrics
Investors will review a number of parameters in the next earnings announcement.
Growth in Certain Market Segments
In comparing the Q1 FY22 numbers and the full year fiscal 2021 numbers, almost all segments have shown strong improvement, except for gadgets. As a clear engine of growth, servers and cloud services, such as Microsoft Azure and others, will be closely watched by investors.
As seen above, server goods and other cloud services were up 35 percent YOY in Q1 FY22. For fiscal year 2021, annual growth of 27% was reported, as shown below.
LinkedIn and search ads have both seen significant increases in the past year. At 16 percent, office goods had a strong increase in revenue year-over-year Q1 FY22 YOY. Whether or not Q2 numbers are similar will be interesting to watch.
Microsoft Shareholder Profitability
Profitability has recently increased at Microsoft, which is great news for investors. An EBITDA margin of over 50% is critical.
Increased advantages of intelligent cloud accounts for most of these operations. As shown below, operating income increased substantially faster than revenue in this segment.
The operating margin for this segment has increased from 36 percent in FY 2019 to 38% in FY 2020 and finally to 43% in FY 2021. Intelligent cloud operating margin increased to 45% in the first quarter of fiscal 2022. Management is definitely operating at a very high level. It also shows that Microsoft's cloud services are in high demand.
Microsoft Shareholders Balance Sheet
Despite the sizeable return on capital to shareholders through share buybacks and dividends, Microsoft's financial statements have remained strong.
In its latest financial report, the company reported having more than $130 billion in cash and short-term assets, compared to $50 billion in long-term debt. Cash balances and short-term investments account for more than 5 percent of current market value. S
as a result of net debt, the company is valued at $2.24 trillion, almost $50 billion less than its current market value. Shareholders may anticipate a similar capital structure when Q2 FY22 earnings are disclosed.
Is Microsoft a Good Long Term Stock?
According to the latest data, Microsoft is now worth more than the company ever valued. Featured here are future EV to EBITDA and forward price-to-earnings (P/E) ratios alongside other mega-caps Apple (AAPL) and Alphabet (GOOG).
In other words, investors believe that earnings will continue to beat forecasts and margins will remain high.