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Ahead of Microsoft (MSFT) Q3 Earnings: Get Ready With Wall Street Estimates for Key Metrics

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The upcoming report from Microsoft (MSFT - Free Report) is expected to reveal quarterly earnings of $2.81 per share, indicating an increase of 14.7% compared to the year-ago period. Analysts forecast revenues of $60.63 billion, representing an increase of 14.7% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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.

The average prediction of analysts places 'Revenue- Productivity and Business Processes' at $19.50 billion. The estimate points to a change of +11.4% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Intelligent Cloud' should arrive at $26.22 billion. The estimate points to a change of +18.7% from the year-ago quarter.

Analysts forecast 'Revenue- More Personal Computing' to reach $14.93 billion. The estimate indicates a year-over-year change of +12.6%.

The consensus among analysts is that 'Revenue- LinkedIn' will reach $4.01 billion. The estimate suggests a change of +8.5% year over year.

The consensus estimate for 'Revenue- Devices' stands at $1.10 billion. The estimate points to a change of -14.5% from the year-ago quarter.

Analysts expect 'Revenue- Enterprise Services' to come in at $1.80 billion. The estimate points to a change of -10.1% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Search & news advertising' of $3.21 billion. The estimate suggests a change of +5.3% year over year.

The combined assessment of analysts suggests that 'Percentage Change in Revenue Y/Y' will likely reach 14.7%. The estimate compares to the year-ago value of 7%.

According to the collective judgment of analysts, 'Intelligent Cloud - Percentage Change in Revenue Y/Y' should come in at 18.6%. The estimate compares to the year-ago value of 16%.

Analysts predict that the 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' will reach 11.2%. The estimate is in contrast to the year-ago figure of 11%.

Analysts' assessment points toward 'Long-term unearned revenue' reaching $3.30 billion. The estimate is in contrast to the year-ago figure of $2.70 billion.

It is projected by analysts that the 'Short-term unearned revenue' will reach $40.43 billion. Compared to the current estimate, the company reported $36.90 billion in the same quarter of the previous year.

View all Key Company Metrics for Microsoft here>>>

Microsoft shares have witnessed a change of -6.9% in the past month, in contrast to the Zacks S&P 500 composite's -4% move. With a Zacks Rank #3 (Hold), MSFT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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