Wall Street analysts forecast that Microsoft (MSFT) will report quarterly earnings of $3.20 per share in its upcoming release, pointing to a year-over-year increase of 8.8%. It is anticipated that revenues will amount to $68.38 billion, exhibiting an increase of 10.6% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Microsoft metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Productivity and Business Processes' should come in at $29.63 billion. The estimate suggests a change of +51.4% year over year.
The combined assessment of analysts suggests that 'Revenue- More Personal Computing' will likely reach $12.64 billion. The estimate indicates a change of -18.9% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Intelligent Cloud' will reach $26.12 billion. The estimate points to a change of -2.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'More Personal Computing- Search and news advertising' of $3.32 billion. The estimate indicates a year-over-year change of +6.1%.
Analysts predict that the 'Revenue- Windows' will reach $3.97 billion. The estimate suggests a change of -33.1% year over year.
Analysts expect 'More Personal Computing- Revenue from Gaming' to come in at $5.44 billion. The estimate points to a change of -0.1% from the year-ago quarter.
Based on the collective assessment of analysts, 'Percentage Change in Revenue Y/Y' should arrive at 10.5%. Compared to the current estimate, the company reported 17% in the same quarter of the previous year.
Analysts' assessment points toward 'Intelligent Cloud - Percentage Change in Revenue Y/Y' reaching 18.0%. Compared to the present estimate, the company reported 21% in the same quarter last year.
Analysts forecast 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' to reach 9.4%. Compared to the current estimate, the company reported 12% in the same quarter of the previous year.
The consensus estimate for 'More Personal Computing - Percentage Change in Revenue Y/Y' stands at 0.2%. Compared to the current estimate, the company reported 17% in the same quarter of the previous year.
The average prediction of analysts places 'Long-term unearned revenue' at $3.37 billion. The estimate is in contrast to the year-ago figure of $2.95 billion.
The consensus among analysts is that 'Short-term unearned revenue' will reach $47.49 billion. The estimate is in contrast to the year-ago figure of $41.89 billion.
View all Key Company Metrics for Microsoft here>>>
Shares of Microsoft have demonstrated returns of -0.8% over the past month compared to the Zacks S&P 500 composite's -4.8% change. With a Zacks Rank #3 (Hold), MSFT is expected to mirror the overall market performance in the near future. 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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