We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft (MSFT) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Read MoreHide Full Article
For the quarter ended December 2022, Microsoft (MSFT - Free Report) reported revenue of $52.75 billion, up 2% over the same period last year. EPS came in at $2.32, compared to $2.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $52.93 billion, representing a surprise of -0.34%. The company delivered an EPS surprise of +2.2%, with the consensus EPS estimate being $2.27.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Percentage Change in Revenue Y/Y (GAAP): 2% versus the nine-analyst average estimate of 3.36%.
More Personal Computing - Percentage Change Y/Y (GAAP): -19% versus -12.21% estimated by eight analysts on average.
Productivity and Business Processes - Percentage Change Y/Y (GAAP): 7% versus 4.98% estimated by eight analysts on average.
Intelligent Cloud - Percentage Change Y/Y (GAAP): 18% versus 16.99% estimated by eight analysts on average.
Revenue-Intelligent Cloud: $21.51 billion compared to the $21.41 billion average estimate based on 11 analysts. The reported number represents a change of +17.4% year over year.
Revenue-Productivity and Business Processes: $17 billion compared to the $16.77 billion average estimate based on 11 analysts. The reported number represents a change of +6.7% year over year.
Revenue-More Personal Computing: $14.24 billion compared to the $14.72 billion average estimate based on 11 analysts. The reported number represents a change of -18.5% year over year.
Revenue from Office products and cloud services: $11.84 billion versus $11.65 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.
Linkedin Revnue: $3.88 billion compared to the $3.82 billion average estimate based on four analysts. The reported number represents a change of +9.8% year over year.
Revenue from Server products and cloud services: $19.59 billion compared to the $19.21 billion average estimate based on four analysts. The reported number represents a change of +19.7% year over year.
Revenue from Windows: $4.81 billion compared to the $5.34 billion average estimate based on four analysts. The reported number represents a change of -27.2% year over year.
Revenue from Gaming: $4.76 billion compared to the $4.72 billion average estimate based on four analysts. The reported number represents a change of -12.6% year over year.
Shares of Microsoft have returned +1.6% over the past month versus the Zacks S&P 500 composite's +4.6% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microsoft (MSFT) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2022, Microsoft (MSFT - Free Report) reported revenue of $52.75 billion, up 2% over the same period last year. EPS came in at $2.32, compared to $2.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $52.93 billion, representing a surprise of -0.34%. The company delivered an EPS surprise of +2.2%, with the consensus EPS estimate being $2.27.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
View all Key Company Metrics for Microsoft here>>>
Shares of Microsoft have returned +1.6% over the past month versus the Zacks S&P 500 composite's +4.6% 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.