Microsoft CEO Satya Nadella speaks at the Digital-Life-Design conference in Munich, Germany, on January 16, 2017.
Tobias Hase | dpa | Getty Images
Microsoft will issue its fiscal fourth-quarter earnings report after market close on Thursday.
Here are the numbers to watch:
- Earnings: $1.21 per share, excluding certain items, as expected by analysts, according to Refinitiv.
- Revenue: $32.77 billion as expected by analysts, according to Refinitiv.
Heading into earnings, analysts at Bank of America Merrill Lynch, KeyBanc Capital Markets and Stifel signaled they were expecting annualized Azure growth to fall to about 68%, which would be the lowest level in at least four years. The moderating Azure growth is more about the law of large numbers than falling demand, Stifel analysts led by Brad Reback, who rate Microsoft as a buy, wrote in a note distributed to clients on Sunday.
“Our partner conversations this quarter continued to emphasize Azure’s momentum, which are enabling the company to significantly outpace the overall market’s growth as they see Azure contract commitments seeing significant uplift in terms of contract value and duration,” Goldman Sachs analysts led by Heather Bellini, who have a buy rating on Microsoft stock, wrote in a Thursday note.
The Stifel analysts also highlighted quarterly PC shipment data that IDC released last week, which suggested 4.7% year-over-year growth, partly thanks to increased Intel chip supply. “Net/net, we view these better-than-expected results as a modest tailwind for Microsoft’s Windows business for the quarter,” they wrote.
Shares of Microsoft are up about 33% since the beginning of 2019.
Executives will discuss the results and provide guidance on a conference call with analysts at 5:30 p.m. Eastern time.
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