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Countdown to Microsoft (MSFT) Q4 Earnings: A Look at Estimates Beyond Revenue and EPS

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Wall Street analysts forecast that Microsoft (MSFT - Free Report) will report quarterly earnings of $3.35 per share in its upcoming release, pointing to a year-over-year increase of 13.6%. It is anticipated that revenues will amount to $73.71 billion, exhibiting an increase of 13.9% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

With that in mind, let's delve into the average projections of some Microsoft metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Revenue- More Personal Computing' to come in at $12.60 billion. The estimate suggests a change of -20.7% year over year.

Analysts predict that the 'Revenue- Intelligent Cloud' will reach $28.94 billion. The estimate suggests a change of +1.5% year over year.

The consensus among analysts is that 'Revenue- Productivity and Business Processes' will reach $32.15 billion. The estimate points to a change of +58.2% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Windows' should come in at $3.88 billion. The estimate suggests a change of -40.2% year over year.

It is projected by analysts that the 'More Personal Computing- Revenue from Gaming' will reach $5.29 billion. The estimate points to a change of +5.3% from the year-ago quarter.

The combined assessment of analysts suggests that 'More Personal Computing- Search and news advertising' will likely reach $3.53 billion. The estimate indicates a year-over-year change of +11.5%.

The consensus estimate for 'Percentage Change in Revenue Y/Y' stands at 13.9%. The estimate compares to the year-ago value of 15.0%.

The collective assessment of analysts points to an estimated 'Intelligent Cloud - Percentage Change in Revenue Y/Y' of 19.2%. Compared to the present estimate, the company reported 19.0% in the same quarter last year.

Analysts forecast 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' to reach 12.0%. The estimate compares to the year-ago value of 11.0%.

The average prediction of analysts places 'More Personal Computing - Percentage Change in Revenue Y/Y' at -0.3%. Compared to the present estimate, the company reported 14.0% in the same quarter last year.

Based on the collective assessment of analysts, 'Long-term unearned revenue' should arrive at $3.50 billion. Compared to the present estimate, the company reported $2.60 billion in the same quarter last year.

Analysts' assessment points toward 'Short-term unearned revenue' reaching $57.97 billion. Compared to the current estimate, the company reported $57.58 billion in the same quarter of the previous year.

View all Key Company Metrics for Microsoft here>>>

Shares of Microsoft have experienced a change of +2.7% in the past month compared to the +4.6% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), MSFT is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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