From NASDAQ:

1. Microsoft (NASDAQ: MSFT) will report its fiscal Q2 2024 results on Tuesday, January 30, 2024. Revenues and earnings are expected to surpass consensus estimates, following a 13% rise in net revenues to $56.5 billion in the last quarter. Total expenses as a % of revenues decreased, hinting at favorable second-quarter results.

2. MSFT stock saw strong gains of 75% over three years, but returns were inconsistent. In 2022, MSFT underperformed the S&P 500 and may face similar challenges amid the uncertain macroeconomic environment. The Trefis High Quality (HQ) Portfolio, however, outperformed the S&P 500 each year with less risk.

3. The financial outlook indicates a $409 valuation per share, exceeding the current market price by 5%. Revenue growth is expected to continue, reaching $240.7 billion for FY2024. Q2 2024 net revenues are forecasted to be around $61.74 billion, slightly above the $61.13 billion consensus estimate.

4. The productivity & business processes revenues increased 9% in FY2023, followed by a 17% rise in intelligent cloud revenues. The growth momentum continued in Q1 2024. Overall, Microsoft’s FY2024 revenues are expected to reach $240.7 billion.

5. The net income improved in Q1, increasing by 275 y-o-y, and is expected to follow the same trend in the second quarter. Annual GAAP EPS for FY2024 is forecasted at $11.28, prima facie indicators are positive.

6. Microsoft Q2 2024 adjusted earnings per share (EPS) is expected to be $2.82, marginally above the consensus estimate of $2.78. GAAP EPS estimate of around $11.28 and a P/E multiple leads to a valuation of $409 for Microsoft.

7. Stock returns have shown inconsistent gains for MSFT, but our forecast bodes well, with a $409 valuation per share, ensuring a 5% increase from the current market price. Note that Trefis provides accurate financial metrics to gauge performance and to invest in the stock market with confidence.



Read more: Up 63% Since The Beginning Of 2023, How Will Microsoft Stock Trend After Q2 Earnings?