Analysts on Wall Street project that Microsoft (MSFT) will announce quarterly earnings of $2.76 per share in its forthcoming report, representing an increase of 19% year over year. Revenues are projected to reach $61.03 billion, increasing 15.7% from the same quarter last year.
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.
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 a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
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 $18.98 billion. The estimate suggests a change of +11.6% year over year.
Analysts forecast 'Revenue- Intelligent Cloud' to reach $25.28 billion. The estimate suggests a change of +17.5% year over year.
The consensus estimate for 'Revenue- More Personal Computing' stands at $16.76 billion. The estimate points to a change of +17.8% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenue- LinkedIn' of $4.11 billion. The estimate indicates a change of +5.9% from the prior-year quarter.
Analysts predict that the 'Revenue- Devices' will reach $1.20 billion. The estimate indicates a change of -16.3% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Enterprise Services' should come in at $1.82 billion. The estimate suggests a change of -2.3% year over year.
The combined assessment of analysts suggests that 'Revenue- Search & news advertising' will likely reach $3.39 billion. The estimate indicates a change of +5.3% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Gaming' will reach $6.99 billion. The estimate indicates a year-over-year change of +47%.
Analysts' assessment points toward 'Revenue- Office products and cloud services' reaching $13.28 billion. The estimate indicates a change of +12.2% from the prior-year quarter.
The consensus among analysts is that 'Revenue- Server products and cloud services' will reach $23.45 billion. The estimate suggests a change of +19.7% year over year.
Analysts expect 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' to come in at 12.4%. Compared to the present estimate, the company reported 7% in the same quarter last year.
Based on the collective assessment of analysts, 'Intelligent Cloud - Percentage Change in Revenue Y/Y' should arrive at 17.6%. Compared to the current estimate, the company reported 18% 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 +2.5% 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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