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September 01, 2020 1:29pm
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MicroStrategy (MSTR) To Report Earnings Tomorrow: Here Is What To Expect

MSTR Cover Image

Business analytics software company MicroStrategy (NASDAQ:MSTR) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

MicroStrategy missed analysts’ revenue expectations by 8.6% last quarter, reporting revenues of $111.4 million, down 7.4% year on year. It was a disappointing quarter for the company, with a miss of analysts’ EBITDA and billings estimates.

Is MicroStrategy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting MicroStrategy’s revenue to decline 6.2% year on year to $121.5 million, a reversal from the 3.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.

MicroStrategy Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MicroStrategy has missed Wall Street’s revenue estimates five times over the last two years.

With MicroStrategy being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for data and analytics software stocks. However, there has been positive investor sentiment in the segment, with share prices up 3.6% on average over the last month. MicroStrategy is up 54.1% during the same time and is heading into earnings with an average analyst price target of $215.02 (compared to the current share price of $259.85).

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