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.
Compared to Estimates, Microsoft (MSFT) Q3 Earnings: A Look at Key Metrics
Read MoreHide Full Article
For the quarter ended March 2023, Microsoft (MSFT - Free Report) reported revenue of $52.86 billion, up 7.1% over the same period last year. EPS came in at $2.45, compared to $2.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $50.93 billion, representing a surprise of +3.78%. The company delivered an EPS surprise of +10.36%, with the consensus EPS estimate being $2.22.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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: 11% compared to the 7.72% average estimate based on 10 analysts.
Percentage Change in Revenue Y/Y: 7% versus the 10-analyst average estimate of 3.27%.
More Personal Computing - Percentage Change in Revenue Y/Y: -9% versus the 10-analyst average estimate of -16.61%.
Intelligent Cloud - Percentage Change in Revenue Y/Y: 16% versus 14.78% estimated by 10 analysts on average.
Revenue- Intelligent Cloud: $22.08 billion compared to the $21.84 billion average estimate based on 11 analysts. The reported number represents a change of +15.9% year over year.
Revenue- Productivity and Business Processes: $17.52 billion versus the 11-analyst average estimate of $17.01 billion. The reported number represents a year-over-year change of +10.9%.
Revenue- More Personal Computing: $13.26 billion compared to the $12.12 billion average estimate based on 11 analysts. The reported number represents a change of -8.7% year over year.
Revenue- Office products and cloud services: $12.44 billion compared to the $11.86 billion average estimate based on six analysts. The reported number represents a change of +11.4% year over year.
Revenue- LinkedIn: $3.70 billion compared to the $3.68 billion average estimate based on six analysts. The reported number represents a change of +7.6% year over year.
Revenue- Server products and cloud services: $20.03 billion versus the six-analyst average estimate of $19.79 billion. The reported number represents a year-over-year change of +17.5%.
Revenue- Windows: $5.33 billion compared to the $4.92 billion average estimate based on six analysts. The reported number represents a change of -12.3% year over year.
Revenue- Gaming: $3.61 billion versus $3.45 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -3.6% change.
Shares of Microsoft have returned +2% over the past month versus the Zacks S&P 500 composite's +4.3% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Compared to Estimates, Microsoft (MSFT) Q3 Earnings: A Look at Key Metrics
For the quarter ended March 2023, Microsoft (MSFT - Free Report) reported revenue of $52.86 billion, up 7.1% over the same period last year. EPS came in at $2.45, compared to $2.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $50.93 billion, representing a surprise of +3.78%. The company delivered an EPS surprise of +10.36%, with the consensus EPS estimate being $2.22.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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: 11% compared to the 7.72% average estimate based on 10 analysts.
- Percentage Change in Revenue Y/Y: 7% versus the 10-analyst average estimate of 3.27%.
- More Personal Computing - Percentage Change in Revenue Y/Y: -9% versus the 10-analyst average estimate of -16.61%.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 16% versus 14.78% estimated by 10 analysts on average.
- Revenue- Intelligent Cloud: $22.08 billion compared to the $21.84 billion average estimate based on 11 analysts. The reported number represents a change of +15.9% year over year.
- Revenue- Productivity and Business Processes: $17.52 billion versus the 11-analyst average estimate of $17.01 billion. The reported number represents a year-over-year change of +10.9%.
- Revenue- More Personal Computing: $13.26 billion compared to the $12.12 billion average estimate based on 11 analysts. The reported number represents a change of -8.7% year over year.
- Revenue- Office products and cloud services: $12.44 billion compared to the $11.86 billion average estimate based on six analysts. The reported number represents a change of +11.4% year over year.
- Revenue- LinkedIn: $3.70 billion compared to the $3.68 billion average estimate based on six analysts. The reported number represents a change of +7.6% year over year.
- Revenue- Server products and cloud services: $20.03 billion versus the six-analyst average estimate of $19.79 billion. The reported number represents a year-over-year change of +17.5%.
- Revenue- Windows: $5.33 billion compared to the $4.92 billion average estimate based on six analysts. The reported number represents a change of -12.3% year over year.
- Revenue- Gaming: $3.61 billion versus $3.45 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -3.6% change.
View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +2% over the past month versus the Zacks S&P 500 composite's +4.3% 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.