Microsoft: ChatGPT Bet, Azure Revenues in Focus Ahead of Key Earnings Report
Microsoft (NASDAQ:MSFT) is scheduled to release its quarterly earnings report on Tuesday, October 24, after market close. In recent days, the company has been at the center of attention, marked by several significant developments.
On the positive side, the tech giant recently completed its acquisition of the video game publisher Activision Blizzard (NASDAQ:ATVI) following an extensive regulatory battle with competition authorities in the USA, Europe, and the UK.
In less favorable news, it was disclosed last week that the Internal Revenue Service is proposing a substantial $29 billion settlement to Microsoft as part of a tax audit that covers the period from 2004 to 2013.
Nonetheless, what investors are most eagerly anticipating are the quarterly results to be revealed next Tuesday. These results will be pivotal in shaping expectations for Microsoft's performance for the remainder of the year.
As InvestingPro points out, the analyst consensus forecasts sales of $54.5431 billion, which would represent annual growth of 8.7%. EPS is expected at $2.65, up 12.8% on the same quarter last year.
Source: InvestingPro
There have been 20 upward revisions to EPS forecasts, and only 4 downward revisions in the last 90 days.
It is also interesting to note that Microsoft exceeded expectations in terms of both earnings and sales in its last quarterly publication.
Source: InvestingPro
Historically, Microsoft has a strong propensity for exceeding analysts' expectations.
Source: InvestingPro
Indeed, EPS has exceeded expectations in 6 of the last 8 quarters, as have revenues.
Beyond these headline figures, investors will be keeping a close eye on results from Azure, one of Microsoft's key growth drivers. Last quarter, Azure revenues
Read more on investing.com
