Computing giant Microsoft (NASDAQ: MSFT) is set to announce its fiscal year 2021 third-quarter financial results on April 27, 2021, in a virtual event as analyst project bullish outcomes.
Ahead of the results, Microsoft is on the verge of a critical milestone of hitting the elusive $2 trillion valuations with the current market capitalization standing at $1.9 trillion.
The firm’s valuation comes amid strong stock performance that is up 17% this year. In the last 12 months, the stock has risen by an impressive 47%.
Wall Street analysts project that Microsoft earnings will be $1.58 a share with sales of $38.7 billion during the current fiscal third quarter.
Notably, the fiscal second quarter ended December 3, 2020. Microsoft surpassed analysts’ expectations after earning $2.03 per share, up 34% year over year. Amid the challenging economic times, Microsoft sales rose by 17% during the last quarter to record $43.08 billion in sales. Wall Street analysts had expected earnings of $1.64 a share on sales of $40.18 billion.
Microsoft to continue reaping from pandemic
Like other technology players, Microsoft is expected to post strong results after becoming a beneficiary of the coronavirus pandemic. Stocks for the companies remained resilient through the health crisis, and the reopening of the economy will potentially boost the results. The work from home trends has led to increased PC buying and utilization of the company’s software.
Just like the last quarter, Microsoft’s results will rely on its cloud segment. The firm has boosted its cloud offerings with three new industry-specific products, including Microsoft Cloud for financial services, manufacturing, and nonprofits. Following the February 24, 2021 announcement, the stock rose by 0.6%.
The financial results announcements come after Microsoft’s acquisition of speech-recognition firm Nuance Communications for $16 billion, or $56 a share. The deal is Microsoft’s second-largest, the $27 billion purchase of LinkedIn in 2016.