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Microsoft Q3 earnings preview

Date of earnings release

26/10/17 after-market

 

The story

Windows 10 has helped secure Microsoft’s dominance of the large but slowing PC market. PC sales have fallen for twelve straight quarters. Its hybrid laptop/tablet ‘Surface’ sales can help cushion the blow. Microsoft looks like it has thrown in the towel on plans for Windows Mobile to compete against iOS and Android as a Smartphone operating system. Admitting failure as a mobile operating system developer allows Microsoft to focus on its growing cloud computing businesses including Office 365, LinkedIn, Skype and Azure. Shares soaring in the last year make the questionable assumption Microsoft can still thrive in a post-Windows PC World.


Price Chart


Price performance

5yr: +184%

YTD: +27%

Since last earnings date: +6.3%

 

Earnings

EPS expectation for Q3: 0.715 (Adjusted), 0.710 (GAAP)

Revenue expectation for Q3: 23.52B

 

Revenue history and expectations

Source: Bloomberg, 23/10/17

 

Net income adj. history and expectations

Source: Bloomberg, 23/10/17

 

Valuation
Fwd 12M P/E ratio: 24.78

 

 

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