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3 Key Estimates for Microsoft's (MSFT) Q4 Earnings Report
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Shares of Microsoft (MSFT - Free Report) closed lower on Wednesday just one day ahead of the release of its Q4 fiscal 2018 financial results, which are due out after the closing bell today. Thursday’s report will likely impact Microsoft stock for some time, so let’s see what investors should expect from its specific business units as they might be even more important than overall revenue and earnings growth.
MSFT stock has climbed roughly 98% over the last two years and 42% during the last 12 months. More recently, shares of Microsoft are up roughly 9% over the last three months. The company’s success on the stock market is based on the continued growth of some of its more traditional businesses, coupled with its new-age ventures.
Microsoft has pushed into artificial intelligence and the Internet of Things and now competes directly against Amazon (AMZN - Free Report) , Oracle (ORCL - Free Report) , and Google (GOOGL - Free Report) in the cloud computing industry. These new growth areas are projected to help Microsoft this quarter. Our latest Zacks Consensus Estimates are calling for Microsoft’s Q4 revenues to climb by 18.24% to reach $29.21 billion. Meanwhile, the firm’s adjusted Q4 EPS figure is expected to expand by over 9% to hit $1.07 per share.
But of course, earnings and revenue are just two of the many things investors will be looking at when Microsoft reports today. In fact, it is possible that any post-earnings momentum MSFT might experience could be driven by the performance of its three primary business segments: Productivity & Business Processes, Intelligent Cloud, and More Personal Computing. Therefore, investors need to understand what to expect from these vital business units.
To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Productivity & Business Processes
Revenues from Microsoft’s Productivity & Business Processes unit, which includes the company’s Office, LinkedIn, and Dynamics CRM businesses, are expected to hit $9.69 billion, according to these NFM consensus estimates.
This would mark roughly 14.5% growth from the $8.45 billion Microsoft reported in the prior-year period. Last quarter, Productivity and Business Processes revenues surged 17% to $8.95 billion.
Intelligent Cloud
Moving on, Microsoft’s growing Intelligent Cloud business, which contains its server and enterprise products, including Azure, is projected to climb about 22% from $7.43 billion to reach $9.08 billion.
In the previous quarter, Intelligent Cloud revenues hit $7.89 billion, which marked at 17% climb. Investors should note that Azure revenue skyrocketed 93% last quarter.
More Personal Computing
Lastly, Microsoft’s More Personal Computing unit, which includes Windows, Gaming, Devices, and Search businesses, is expected to report revenues of $10.44 billion. This would mark a roughly 18% surge from the $8.82 billion it reported in the year-ago period.
More Personal Computing saw revenues of $9.92 billion last quarter, which marked a roughly 13% expansion.
Make sure to check back here for our full analysis of Microsoft’s actual results!
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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3 Key Estimates for Microsoft's (MSFT) Q4 Earnings Report
Shares of Microsoft (MSFT - Free Report) closed lower on Wednesday just one day ahead of the release of its Q4 fiscal 2018 financial results, which are due out after the closing bell today. Thursday’s report will likely impact Microsoft stock for some time, so let’s see what investors should expect from its specific business units as they might be even more important than overall revenue and earnings growth.
MSFT stock has climbed roughly 98% over the last two years and 42% during the last 12 months. More recently, shares of Microsoft are up roughly 9% over the last three months. The company’s success on the stock market is based on the continued growth of some of its more traditional businesses, coupled with its new-age ventures.
Microsoft has pushed into artificial intelligence and the Internet of Things and now competes directly against Amazon (AMZN - Free Report) , Oracle (ORCL - Free Report) , and Google (GOOGL - Free Report) in the cloud computing industry. These new growth areas are projected to help Microsoft this quarter. Our latest Zacks Consensus Estimates are calling for Microsoft’s Q4 revenues to climb by 18.24% to reach $29.21 billion. Meanwhile, the firm’s adjusted Q4 EPS figure is expected to expand by over 9% to hit $1.07 per share.
But of course, earnings and revenue are just two of the many things investors will be looking at when Microsoft reports today. In fact, it is possible that any post-earnings momentum MSFT might experience could be driven by the performance of its three primary business segments: Productivity & Business Processes, Intelligent Cloud, and More Personal Computing. Therefore, investors need to understand what to expect from these vital business units.
To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Productivity & Business Processes
Revenues from Microsoft’s Productivity & Business Processes unit, which includes the company’s Office, LinkedIn, and Dynamics CRM businesses, are expected to hit $9.69 billion, according to these NFM consensus estimates.
This would mark roughly 14.5% growth from the $8.45 billion Microsoft reported in the prior-year period. Last quarter, Productivity and Business Processes revenues surged 17% to $8.95 billion.
Intelligent Cloud
Moving on, Microsoft’s growing Intelligent Cloud business, which contains its server and enterprise products, including Azure, is projected to climb about 22% from $7.43 billion to reach $9.08 billion.
In the previous quarter, Intelligent Cloud revenues hit $7.89 billion, which marked at 17% climb. Investors should note that Azure revenue skyrocketed 93% last quarter.
More Personal Computing
Lastly, Microsoft’s More Personal Computing unit, which includes Windows, Gaming, Devices, and Search businesses, is expected to report revenues of $10.44 billion. This would mark a roughly 18% surge from the $8.82 billion it reported in the year-ago period.
More Personal Computing saw revenues of $9.92 billion last quarter, which marked a roughly 13% expansion.
Make sure to check back here for our full analysis of Microsoft’s actual results!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>