Microsoft to Report Fiscal Fourth-Quarter Results on Tuesday

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Microsoft ($NASDAQ:MSFT) is set to report its fiscal fourth-quarter results after Tuesday’s market close. Investors and analysts will likely focus on matters such as the software giant’s Azure cloud business. Analysts currently estimate that Microsoft will report a profit of $2.29 a share on revenue of $52.4 billion. In June, Microsoft cut its quarterly outlook to a profit of between $2.24 and $2.32 a share, on revenue in a range of $52.94 billion to $52.74 billion. It is not yet known how the coronavirus pandemic will affect Microsoft’s results, but it is possible that the company’s cloud business will see an increase in demand as more businesses move to remote working.

However, Microsoft’s other businesses may be adversely affected by the pandemic. It is too early to say how Microsoft’s results will be affected in the long term, but the company’s strong financial position means that it is well-placed to weather any short-term challenges.

Market Reaction

On Tuesday, Microsoft stock opened at $259.9 and closed at $251.9.

VI Analysis

Companies with strong fundamentals usually have a higher potential for growth in the long term. The VI app makes it easy to analyze a company’s fundamentals and determine its long-term potential. The fair value of MICROSOFT shares is around $272.0, as calculated by VI Line.. Currently, MICROSOFT shares are trading at $251.9, which is a fair price that is undervalued by 7%.

Summary

While Microsoft’s cloud computing business continues to grow at an impressive rate, the company is facing increased competition from the likes of Amazon and Google. Its Surface line of tablets has also been under pressure, with sales falling short of expectations. Investors will be looking for guidance from Microsoft on how it plans to compete in these areas going forward. They will also be closely watching the company’s bottom line, as Microsoft looks to return to profitability after several quarters of losses.