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Microsoft (MSFT) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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Microsoft (MSFT - Free Report) reported $62.02 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 17.6%. EPS of $2.93 for the same period compares to $2.32 a year ago.
The reported revenue represents a surprise of +1.62% over the Zacks Consensus Estimate of $61.03 billion. With the consensus EPS estimate being $2.76, the EPS surprise was +6.16%.
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% compared to the 12.5% average estimate based on nine analysts.
Intelligent Cloud - Percentage Change in Revenue Y/Y: 20% versus 17.6% estimated by nine analysts on average.
More Personal Computing - Percentage Change in Revenue Y/Y: 19% versus 17.8% estimated by nine analysts on average.
Percentage Change in Revenue Y/Y: 18% versus 15% estimated by nine analysts on average.
Revenue- Productivity and Business Processes: $19.25 billion compared to the $18.98 billion average estimate based on 11 analysts. The reported number represents a change of +13.2% year over year.
Revenue- More Personal Computing: $16.89 billion compared to the $16.76 billion average estimate based on 11 analysts. The reported number represents a change of +18.6% year over year.
Revenue- Intelligent Cloud: $25.88 billion versus $25.28 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +20.3% change.
Revenue- Service and other: $43.08 billion compared to the $44.22 billion average estimate based on two analysts. The reported number represents a change of +18.9% year over year.
Unearned revenue- More Personal Computing: $5.75 billion versus $4.28 billion estimated by two analysts on average.
Unearned revenue- Intelligent Cloud: $17.70 billion compared to the $18.96 billion average estimate based on two analysts.
Revenue- Product: $18.94 billion compared to the $16.80 billion average estimate based on two analysts. The reported number represents a change of +14.7% year over year.
Unearned revenue- Productivity and Business Processes: $22.59 billion versus the two-analyst average estimate of $24.57 billion.
Shares of Microsoft have returned +9% over the past month versus the Zacks S&P 500 composite's +3.4% 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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Microsoft (MSFT) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Microsoft (MSFT - Free Report) reported $62.02 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 17.6%. EPS of $2.93 for the same period compares to $2.32 a year ago.
The reported revenue represents a surprise of +1.62% over the Zacks Consensus Estimate of $61.03 billion. With the consensus EPS estimate being $2.76, the EPS surprise was +6.16%.
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% compared to the 12.5% average estimate based on nine analysts.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 20% versus 17.6% estimated by nine analysts on average.
- More Personal Computing - Percentage Change in Revenue Y/Y: 19% versus 17.8% estimated by nine analysts on average.
- Percentage Change in Revenue Y/Y: 18% versus 15% estimated by nine analysts on average.
- Revenue- Productivity and Business Processes: $19.25 billion compared to the $18.98 billion average estimate based on 11 analysts. The reported number represents a change of +13.2% year over year.
- Revenue- More Personal Computing: $16.89 billion compared to the $16.76 billion average estimate based on 11 analysts. The reported number represents a change of +18.6% year over year.
- Revenue- Intelligent Cloud: $25.88 billion versus $25.28 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +20.3% change.
- Revenue- Service and other: $43.08 billion compared to the $44.22 billion average estimate based on two analysts. The reported number represents a change of +18.9% year over year.
- Unearned revenue- More Personal Computing: $5.75 billion versus $4.28 billion estimated by two analysts on average.
- Unearned revenue- Intelligent Cloud: $17.70 billion compared to the $18.96 billion average estimate based on two analysts.
- Revenue- Product: $18.94 billion compared to the $16.80 billion average estimate based on two analysts. The reported number represents a change of +14.7% year over year.
- Unearned revenue- Productivity and Business Processes: $22.59 billion versus the two-analyst average estimate of $24.57 billion.
View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +9% over the past month versus the Zacks S&P 500 composite's +3.4% 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.