Benzinga
Published Apr 22, 2024 18:40
Updated Apr 22, 2024 20:10
Microsoft 'In Unique Position To Scale Gen-AI Revenue,' Goldman Sachs Says Ahead Of Q3 Earnings
Benzinga - by Piero Cingari, Benzinga Staff Writer.
Microsoft Corp. (NYSE:MSFT) will report its fiscal Q3 2024 earnings Thursday, after market close, marking the most pivotal earnings report for the week.
The world’s largest corporation has a market of nearly $3 trillion and is currently “in a unique position to scale Gen-AI revenue without structural changes to its profitability profile” according to Goldman Sachs analysts Kash Rangan and Henry Dane.
Microsoft Earnings Preview: What Do Analysts Expect?
Measure | Estimate Low to High Range | Average | YoY Chg % | QoQ Chg % |
Sales | $60.27B – $62.06B | $ 60.769B | 15.14% | -1.87% |
EPS | 2.78 – 3.18 | 2.83 | 15.98% | -3.02% |
Goldman Sachs’ Take “Microsoft is well poised to execute against its estimates for +15% revenue growth, 28% Azure growth, and earnings per shares of $2.87,” Goldman Sachs wrote.
The tech giant is likely to expand due to the growing demand for new tech projects and its focus on improving productivity, even as budgets in IT may tighten, according to Goldman Sachs.
Microsoft’s Azure platform is expected to benefit from significant AI-driven workloads, efforts to improve efficiency, and the quick redeployment of cost savings.
“We believe Microsoft is one of the most compelling investment opportunities in the technology industry and across sectors,” analyst wrote.
Goldman Sachs holds a “Buy” rating with a 12-month price target of $450.
Read Now: The Nvidia Chart Shows The Importance Of Earnings From Tesla, Meta, Microsoft, And Alphabet
Photo: Shutterstock
Latest Ratings for MSFT
Feb 2022 | Tigress Financial | Maintains | Buy | |
Jan 2022 | Citigroup | Maintains | Buy | |
Jan 2022 | Morgan Stanley | Maintains | Overweight |
View the Latest Analyst Ratings
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