Wall Street analysts expect Microsoft (MSFT) to post quarterly earnings of $3.88 per share in its upcoming report, which indicates a year-over-year increase of 20.1%. Revenues are expected to be $80.23 billion, up 15.2% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Microsoft metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Revenue- Productivity and Business Processes' at $33.49 billion. The estimate indicates a change of +13.8% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Intelligent Cloud' should arrive at $32.41 billion. The estimate points to a change of +26.9% from the year-ago quarter.
The consensus among analysts is that 'Revenue- More Personal Computing' will reach $14.27 billion. The estimate indicates a change of -2.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue by product and service offerings- Linkedin Revenue' should come in at $5.05 billion. The estimate indicates a change of +10.1% from the prior-year quarter.
Analysts expect 'Revenue by product and service offerings- Dynamics products and cloud services' to come in at $2.23 billion. The estimate indicates a year-over-year change of +16.8%.
The consensus estimate for 'Revenue- Product' stands at $17.80 billion. The estimate points to a change of +9.7% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Service and other' will reach $62.70 billion. The estimate indicates a change of +17.4% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' of 13.8%. Compared to the current estimate, the company reported 14.0% in the same quarter of the previous year.
Analysts' assessment points toward 'Intelligent Cloud - Percentage Change in Revenue Y/Y' reaching 26.9%. The estimate compares to the year-ago value of 19.0%.
Analysts forecast 'Percentage Change in Revenue Y/Y' to reach 15.1%. The estimate is in contrast to the year-ago figure of 12.0%.
The combined assessment of analysts suggests that 'Long-term unearned revenue' will likely reach $3.43 billion. Compared to the current estimate, the company reported $2.54 billion in the same quarter of the previous year.
Analysts predict that the 'Short-term unearned revenue' will reach $51.39 billion. Compared to the current estimate, the company reported $45.51 billion in the same quarter of the previous year.
View all Key Company Metrics for Microsoft here>>>
Over the past month, Microsoft shares have recorded returns of -7.6% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #2 (Buy), MSFT will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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