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Microsoft (MSFT) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended December 2024, Microsoft (MSFT - Free Report) reported revenue of $69.63 billion, up 12.3% over the same period last year. EPS came in at $3.23, compared to $2.93 in the year-ago quarter.
The reported revenue represents a surprise of +1.35% over the Zacks Consensus Estimate of $68.7 billion. With the consensus EPS estimate being $3.11, the EPS surprise was +3.86%.
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: 12% versus the 10-analyst average estimate of 10.9%.
Intelligent Cloud - Percentage Change in Revenue Y/Y: 19% compared to the 19.6% average estimate based on seven analysts.
Productivity and Business Processes - Percentage Change in Revenue Y/Y: 14% versus the seven-analyst average estimate of 11.6%.
More Personal Computing - Percentage Change in Revenue Y/Y: 0% versus the seven-analyst average estimate of -3.4%.
Revenue- Productivity and Business Processes: $29.44 billion versus the 11-analyst average estimate of $28.86 billion. The reported number represents a year-over-year change of +52.9%.
Revenue- Intelligent Cloud: $25.54 billion versus the 11-analyst average estimate of $25.75 billion. The reported number represents a year-over-year change of -1.3%.
Revenue- More Personal Computing: $14.65 billion versus the 11-analyst average estimate of $14.12 billion. The reported number represents a year-over-year change of -13.3%.
Productivity and Business Processes- Linkedin Revenue: $4.59 billion versus $4.61 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
Productivity & Business Process- Total Microsoft 365 Commercial Products & Cloud Services: $21.12 billion versus $21.16 billion estimated by four analysts on average.
Productivity & Business Process- Total Microsoft 365 Consumer Products & Cloud Services: $1.82 billion compared to the $1.77 billion average estimate based on four analysts.
Revenue- Dynamics products and cloud services: $1.91 billion versus $1.91 billion estimated by four analysts on average.
Revenue- Product: $16.22 billion versus the two-analyst average estimate of $18.67 billion. The reported number represents a year-over-year change of -14.4%.
Shares of Microsoft have returned +6.1% over the past month versus the Zacks S&P 500 composite's +1.7% 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: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2024, Microsoft (MSFT - Free Report) reported revenue of $69.63 billion, up 12.3% over the same period last year. EPS came in at $3.23, compared to $2.93 in the year-ago quarter.
The reported revenue represents a surprise of +1.35% over the Zacks Consensus Estimate of $68.7 billion. With the consensus EPS estimate being $3.11, the EPS surprise was +3.86%.
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: 12% versus the 10-analyst average estimate of 10.9%.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 19% compared to the 19.6% average estimate based on seven analysts.
- Productivity and Business Processes - Percentage Change in Revenue Y/Y: 14% versus the seven-analyst average estimate of 11.6%.
- More Personal Computing - Percentage Change in Revenue Y/Y: 0% versus the seven-analyst average estimate of -3.4%.
- Revenue- Productivity and Business Processes: $29.44 billion versus the 11-analyst average estimate of $28.86 billion. The reported number represents a year-over-year change of +52.9%.
- Revenue- Intelligent Cloud: $25.54 billion versus the 11-analyst average estimate of $25.75 billion. The reported number represents a year-over-year change of -1.3%.
- Revenue- More Personal Computing: $14.65 billion versus the 11-analyst average estimate of $14.12 billion. The reported number represents a year-over-year change of -13.3%.
- Productivity and Business Processes- Linkedin Revenue: $4.59 billion versus $4.61 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
- Productivity & Business Process- Total Microsoft 365 Commercial Products & Cloud Services: $21.12 billion versus $21.16 billion estimated by four analysts on average.
- Productivity & Business Process- Total Microsoft 365 Consumer Products & Cloud Services: $1.82 billion compared to the $1.77 billion average estimate based on four analysts.
- Revenue- Dynamics products and cloud services: $1.91 billion versus $1.91 billion estimated by four analysts on average.
- Revenue- Product: $16.22 billion versus the two-analyst average estimate of $18.67 billion. The reported number represents a year-over-year change of -14.4%.
View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +6.1% over the past month versus the Zacks S&P 500 composite's +1.7% 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.