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Compared to Estimates, Microsoft (MSFT) Q1 Earnings: A Look at Key Metrics
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Microsoft (MSFT - Free Report) reported $56.52 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 12.8%. EPS of $2.99 for the same period compares to $2.35 a year ago.
The reported revenue represents a surprise of +3.90% over the Zacks Consensus Estimate of $54.4 billion. With the consensus EPS estimate being $2.65, the EPS surprise was +12.83%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Productivity and Business Processes - Percentage Change in Revenue Y/Y: 13% versus the 10-analyst average estimate of 10.2%.
Intelligent Cloud - Percentage Change in Revenue Y/Y: 19% versus the 10-analyst average estimate of 15.3%.
More Personal Computing - Percentage Change in Revenue Y/Y: 3% versus -4.1% estimated by 10 analysts on average.
Percentage Change in Revenue Y/Y: 13% versus 8.6% estimated by 10 analysts on average.
Revenue- Productivity and Business Processes: $18.59 billion versus $18.17 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +12.9% change.
Revenue- Intelligent Cloud: $24.26 billion versus $23.45 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +19.4% change.
Revenue- More Personal Computing: $13.67 billion compared to the $12.77 billion average estimate based on 11 analysts. The reported number represents a change of +2.5% year over year.
Revenue- LinkedIn: $3.91 billion versus the six-analyst average estimate of $3.84 billion. The reported number represents a year-over-year change of +6.8%.
Revenue- Search & news advertising: $3.05 billion versus the six-analyst average estimate of $3.06 billion. The reported number represents a year-over-year change of +4.3%.
Revenue- Gaming: $3.92 billion compared to the $3.78 billion average estimate based on six analysts. The reported number represents a change of +8.6% year over year.
Revenue- Windows: $5.57 billion versus $5.07 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
Revenue- Server products and cloud services: $22.31 billion versus $21.71 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change.
Shares of Microsoft have returned +3.7% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, Microsoft (MSFT) Q1 Earnings: A Look at Key Metrics
Microsoft (MSFT - Free Report) reported $56.52 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 12.8%. EPS of $2.99 for the same period compares to $2.35 a year ago.
The reported revenue represents a surprise of +3.90% over the Zacks Consensus Estimate of $54.4 billion. With the consensus EPS estimate being $2.65, the EPS surprise was +12.83%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Productivity and Business Processes - Percentage Change in Revenue Y/Y: 13% versus the 10-analyst average estimate of 10.2%.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 19% versus the 10-analyst average estimate of 15.3%.
- More Personal Computing - Percentage Change in Revenue Y/Y: 3% versus -4.1% estimated by 10 analysts on average.
- Percentage Change in Revenue Y/Y: 13% versus 8.6% estimated by 10 analysts on average.
- Revenue- Productivity and Business Processes: $18.59 billion versus $18.17 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +12.9% change.
- Revenue- Intelligent Cloud: $24.26 billion versus $23.45 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +19.4% change.
- Revenue- More Personal Computing: $13.67 billion compared to the $12.77 billion average estimate based on 11 analysts. The reported number represents a change of +2.5% year over year.
- Revenue- LinkedIn: $3.91 billion versus the six-analyst average estimate of $3.84 billion. The reported number represents a year-over-year change of +6.8%.
- Revenue- Search & news advertising: $3.05 billion versus the six-analyst average estimate of $3.06 billion. The reported number represents a year-over-year change of +4.3%.
- Revenue- Gaming: $3.92 billion compared to the $3.78 billion average estimate based on six analysts. The reported number represents a change of +8.6% year over year.
- Revenue- Windows: $5.57 billion versus $5.07 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
- Revenue- Server products and cloud services: $22.31 billion versus $21.71 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change.
View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +3.7% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.