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Compared to Estimates, Microsoft (MSFT) Q4 Earnings: A Look at Key Metrics
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For the quarter ended June 2023, Microsoft (MSFT - Free Report) reported revenue of $56.19 billion, up 8.3% over the same period last year. EPS came in at $2.69, compared to $2.23 in the year-ago quarter.
The reported revenue represents a surprise of +1.50% over the Zacks Consensus Estimate of $55.36 billion. With the consensus EPS estimate being $2.54, the EPS surprise was +5.91%.
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.
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: 8% versus the 10-analyst average estimate of 6.84%.
Productivity and Business Processes - Percentage Change in Revenue Y/Y: 10% versus the 10-analyst average estimate of 8.78%.
Intelligent Cloud - Percentage Change in Revenue Y/Y: 15% compared to the 13.66% average estimate based on 10 analysts.
More Personal Computing - Percentage Change in Revenue Y/Y: -4% compared to the -5.71% average estimate based on 10 analysts.
Short-term unearned revenue: $50.90 billion compared to the $48.37 billion average estimate based on four analysts.
Revenue- Productivity and Business Processes: $18.29 billion versus $18.06 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.
Revenue- More Personal Computing: $13.91 billion versus $13.57 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a -3.1% change.
Revenue- Service and other: $39.34 billion versus $38.63 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16% change.
Revenue- Product: $16.85 billion versus the two-analyst average estimate of $16.64 billion. The reported number represents a year-over-year change of -6.1%.
Operating Income- Productivity and Business Processes: $9.05 billion versus $8.60 billion estimated by four analysts on average.
Operating Income- More Personal Computing: $4.68 billion versus the four-analyst average estimate of $4.46 billion.
Operating Income- Intelligent Cloud: $10.53 billion compared to the $9.88 billion average estimate based on four analysts.
Shares of Microsoft have returned +4.9% over the past month versus the Zacks S&P 500 composite's +5.1% 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) Q4 Earnings: A Look at Key Metrics
For the quarter ended June 2023, Microsoft (MSFT - Free Report) reported revenue of $56.19 billion, up 8.3% over the same period last year. EPS came in at $2.69, compared to $2.23 in the year-ago quarter.
The reported revenue represents a surprise of +1.50% over the Zacks Consensus Estimate of $55.36 billion. With the consensus EPS estimate being $2.54, the EPS surprise was +5.91%.
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.
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: 8% versus the 10-analyst average estimate of 6.84%.
- Productivity and Business Processes - Percentage Change in Revenue Y/Y: 10% versus the 10-analyst average estimate of 8.78%.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 15% compared to the 13.66% average estimate based on 10 analysts.
- More Personal Computing - Percentage Change in Revenue Y/Y: -4% compared to the -5.71% average estimate based on 10 analysts.
- Short-term unearned revenue: $50.90 billion compared to the $48.37 billion average estimate based on four analysts.
- Revenue- Productivity and Business Processes: $18.29 billion versus $18.06 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.
- Revenue- More Personal Computing: $13.91 billion versus $13.57 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a -3.1% change.
- Revenue- Service and other: $39.34 billion versus $38.63 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16% change.
- Revenue- Product: $16.85 billion versus the two-analyst average estimate of $16.64 billion. The reported number represents a year-over-year change of -6.1%.
- Operating Income- Productivity and Business Processes: $9.05 billion versus $8.60 billion estimated by four analysts on average.
- Operating Income- More Personal Computing: $4.68 billion versus the four-analyst average estimate of $4.46 billion.
- Operating Income- Intelligent Cloud: $10.53 billion compared to the $9.88 billion average estimate based on four analysts.
View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +4.9% over the past month versus the Zacks S&P 500 composite's +5.1% 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.