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Countdown to Microsoft (MSFT) Q1 Earnings: Wall Street Forecasts for Key Metrics

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Wall Street analysts expect Microsoft (MSFT - Free Report) to post quarterly earnings of $3.08 per share in its upcoming report, which indicates a year-over-year increase of 3%. Revenues are expected to be $64.41 billion, up 14% from the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% 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 announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

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.

Analysts forecast 'Revenue- Intelligent Cloud' to reach $27.45 billion. The estimate suggests a change of +13.2% year over year.

Analysts predict that the 'Revenue- More Personal Computing' will reach $14.44 billion. The estimate points to a change of +5.7% from the year-ago quarter.

The average prediction of analysts places 'Revenue- Productivity and Business Processes' at $22.49 billion. The estimate points to a change of +21% from the year-ago quarter.

The combined assessment of analysts suggests that 'Productivity and Business Processes- Linkedin Revenue' will likely reach $4.24 billion. The estimate suggests a change of +8.5% year over year.

Analysts' assessment points toward 'More Personal Computing- Revenue from Gaming' reaching $5.18 billion. The estimate suggests a change of +32.1% year over year.

Analysts expect 'More Personal Computing- Search and news advertising' to come in at $3.39 billion. The estimate indicates a year-over-year change of +11.1%.

It is projected by analysts that the 'Percentage Change in Revenue Y/Y' will reach 13.9%. Compared to the present estimate, the company reported 13% in the same quarter last year.

Based on the collective assessment of analysts, 'Intelligent Cloud - Percentage Change in Revenue Y/Y' should arrive at 18.7%. Compared to the current estimate, the company reported 19% in the same quarter of the previous year.

The consensus among analysts is that 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' will reach 10.5%. The estimate is in contrast to the year-ago figure of 13%.

According to the collective judgment of analysts, 'More Personal Computing - Percentage Change in Revenue Y/Y' should come in at 10.6%. Compared to the present estimate, the company reported 3% in the same quarter last year.

The consensus estimate for 'Long-term unearned revenue' stands at $3.83 billion. Compared to the present estimate, the company reported $2.76 billion in the same quarter last year.

The collective assessment of analysts points to an estimated 'Short-term unearned revenue' of $51.67 billion. Compared to the present estimate, the company reported $46.43 billion in the same quarter last year.

View all Key Company Metrics for Microsoft here>>>

Shares of Microsoft have experienced a change of -1.5% in the past month compared to the +1.4% move of the Zacks S&P 500 composite. 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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