MicroStrategy MSTR is preparing to release its quarterly earnings on Thursday, 2025-05-01. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect MicroStrategy to report an earnings per share (EPS) of $-0.02.
MicroStrategy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Past Earnings Performance
Last quarter the company missed EPS by $3.26, which was followed by a 3.34% drop in the share price the next day.
Here's a look at MicroStrategy's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.06 | -0.14 | -0.11 | 0.03 |
| EPS Actual | -3.20 | -1.56 | -0.76 | -0.83 |
| Price Change % | -3.0% | -1.0% | -4.0% | -18.0% |
Performance of MicroStrategy Shares
Shares of MicroStrategy were trading at $381.45 as of April 29. Over the last 52-week period, shares are up 225.01%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Opinions on MicroStrategy
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MicroStrategy.
Analysts have given MicroStrategy a total of 6 ratings, with the consensus rating being Buy. The average one-year price target is $498.17, indicating a potential 30.6% upside.
Peer Ratings Comparison
The analysis below examines the analyst ratings and average 1-year price targets of AppLovin, Cadence Design Systems and Synopsys, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for AppLovin, with an average 1-year price target of $486.5, suggesting a potential 27.54% upside.
- Analysts currently favor an Outperform trajectory for Cadence Design Systems, with an average 1-year price target of $316.87, suggesting a potential 16.93% downside.
- Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $598.5, suggesting a potential 56.9% upside.
Key Findings: Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for AppLovin, Cadence Design Systems and Synopsys, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Strategy | Buy | -3.04% | $86.53M | -6.10% |
| AppLovin | Buy | 44.01% | $1.05B | 59.04% |
| Cadence Design Systems | Outperform | -8.38% | $1.14B | 5.79% |
| Synopsys | Outperform | -3.68% | $1.19B | 3.23% |
Key Takeaway:
MicroStrategy ranks at the bottom for Revenue Growth among its peers. It is at the top for Gross Profit. For Return on Equity, it is in the middle compared to its peers.
All You Need to Know About MicroStrategy
Strategy is a bitcoin treasury company and a provider of business intelligence services. It is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. The company also provide industry AI-powered enterprise analytics software.
Understanding the Numbers: MicroStrategy's Finances
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: MicroStrategy's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -3.04%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: MicroStrategy's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -555.78%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -6.1%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): MicroStrategy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -3.92%, the company may face hurdles in achieving optimal financial performance.
Debt Management: MicroStrategy's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for MicroStrategy visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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