What to watch for in Microsoft's Q4 results
Investors will watch for these three factors from the tech company's Q4 earnings report.
Microsoft’s Q4 earnings report on July 18 will be closely monitored by investors to see if the tech company will continue to beat expectations after its successful Q3 earnings report.
Analysts expect Microsoft Q4 earnings to increase
Microsoft's stock has outperformed throughout 2019 with year-to-year-growth of 36%. With its bullish run in the US stock market, Microsoft’s market capitalisation topped $1 trillion. Microsoft predicts its Q4 revenue will be in the range of $32.2 billion-$32.9 billion. That estimate falls in line with the Zachs’ Equity Research expectation of $32.73 billion, an increase of 8.8% from Microsoft's $30.6 billion Q3 revenue.
Cloud computing could continue to help Microsoft’s Q4 revenue
Microsoft's Q3 earnings were boosted by strong cloud computing revenue. Now the tech company hopes that its cloud computing division will increase Microsoft’s Q4 earnings. In its Q3 earnings, Microsoft’s cloud revenue was $9.6 billion, a surge of 41%. Investors will see if Microsoft’s successful cloud division can maintain the corporation’s revenue growth.
Partnership with Oracle could impact Microsoft's Q4 profits
Microsoft’s Q4 earnings from cloud technology could further increase after the corporation recently announced a partnership with Oracle. Microsoft’s Azure and Oracle’s Cloud will be connected so users can store data on both cloud services. The collaboration between the former rivals is likely meant to challenge Amazon’s Web Services. Scott Guthrie, Microsoft Cloud’s executive vice-president, touted the partnership between the tech companies in a statement.
‘With Oracle's enterprise expertise, this alliance is a natural choice for us as we [Microsoft] help our joint customers accelerate the migration of enterprise applications and databases to the public cloud,’ said Guthrie.
Investors will watch Microsoft’s Q4 earnings report to see if the tech company’s earnings and revenue will be helped by investment in cloud computing and strategic partnerships.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.