Microsoft (MSFT) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Wall Street analysts forecast that Microsoft (MSFT) will report quarterly earnings of $3.65 per share in its upcoming release, pointing to a year-over-year increase of 10.6%. It is anticipated that revenues will amount to $74.96 billion, exhibiting an increase of 14.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield 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.Analysts forecast 'Revenue- Intelligent Cloud' to reach $30.26 billion. The estimate indicates a change of +25.6% from the prior-year quarter.Analysts' assessment points toward 'Revenue- Productivity and Business Processes' reaching $32.35 billion. The estimate points to a change of +14.2% from the year-ago quarter.Based on the collective assessment of analysts, 'Revenue- More Personal Computing' should arrive at $12.72 billion. The estimate indicates a change of -3.5% from the prior-year quarter.The consensus among analysts is that 'Revenue by product and service offerings- Search and news advertising' will reach $3.63 billion. The estimate suggests a change of +12.5% year over year.The consensus estimate for 'Revenue by product and service offerings- Enterprise and partner service' stands at $1.99 billion. The estimate indicates a year-over-year change of +3.4%.Analysts predict that the 'Revenue by product and service offerings- Linkedin Revenue' will reach $4.66 billion. The estimate indicates a year-over-year change of +8.7%.The average prediction of analysts places 'Percentage Change in Revenue Y/Y' at 14.1%. The estimate is in contrast to the year-ago figure of 16.0%.The combined assessment of analysts suggests that 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' will likely reach 14.2%. Compared to the present estimate, the company reported 12.0% in the same quarter last year.The collective assessment of analysts points to an estimated 'More Personal Computing - Percentage Change in Revenue Y/Y' of -3.4%. The estimate compares to the year-ago value of 17.0%.It is projected by analysts that the 'Intelligent Cloud - Percentage Change in Revenue Y/Y' will reach 25.6%. The estimate compares to the year-ago value of 20.0%.According to the collective judgment of analysts, 'Long-term unearned revenue' should come in at $3.38 billion. Compared to the current estimate, the company reported $2.66 billion in the same quarter of the previous year.Analysts expect 'Short-term unearned revenue' to come in at $57.57 billion. The estimate compares to the year-ago value of $53.03 billion. 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 +1.3% 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 >>>> .Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks