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Seeking Clues to Microsoft (MSFT) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics

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Wall Street analysts expect Microsoft (MSFT - Free Report) to post quarterly earnings of $4.71 per share in its upcoming report, which indicates a year-over-year increase of 14%. Revenues are expected to be $90.58 billion, up 16.6% from the year-ago quarter.

The consensus EPS estimate for the quarter has undergone an upward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

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.

The consensus among analysts is that 'Revenue- Product' will reach $17.94 billion. The estimate indicates a change of +12.7% from the prior-year quarter.

Analysts' assessment points toward 'Revenue- Service and other' reaching $72.55 billion. The estimate indicates a change of +17.5% from the prior-year quarter.

Based on the collective assessment of analysts, 'Percentage Change Y/Y (GAAP)- Revenue' should arrive at 16.6%. Compared to the present estimate, the company reported 18.0% in the same quarter last year.

Analysts predict that the 'Long-term unearned revenue' will reach $4.12 billion. The estimate is in contrast to the year-ago figure of $2.55 billion.

Analysts forecast 'Short-term unearned revenue' to reach $65.30 billion. The estimate is in contrast to the year-ago figure of $58.99 billion.

View all Key Company Metrics for Microsoft here>>>

Over the past month, Microsoft shares have recorded returns of +4.7% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #3 (Hold), MSFT will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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