Microsoft Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Microsoft Corp (NASDAQ:MSFT) will unveil its latest earnings on Thursday, July 21, 2011. Microsoft Corporation develops, licenses and supports a range of software products and services for a variety of computing devices. Microsoft Only Standout in Lagging Video Game Sales>>

Microsoft Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 58 cents per share, a rise of 13.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 58 cents during the last month. For the year, analysts are projecting net income of $2.58 per share, a rise of 22.9% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported profit of 56 cents per share versus a mean estimate of net income of 56 cents per share. In the second quarter, the company beat estimates by 9 cents.

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Wall St. Revenue Expectations: On average, analysts predict $17.25 billion in revenue this quarter, a rise of 7.5% from the year ago quarter. Analysts are forecasting total revenue of $69.73 billion for the year, a rise of 11.6% from last year’s revenue of $62.48 billion.

Analyst Ratings: Analysts are bullish on this stock with 19 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13.3% to $16.43 billion in third quarter. The figure rose 4.9% in the second quarter from the year earlier, climbed 25.3% in the first quarter from the year-ago quarter and 22.4% in the fourth quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 32.5%. The quarter with the biggest boost was the first quarter, which saw a 51.4% surge.

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Novell, Inc. (NASDAQ:NOVL), Oracle Corporation (NASDAQ:ORCL), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Yahoo! Inc. (NASDAQ:YHOO), Apple Inc. (NASDAQ:AAPL), Adobe Systems Incorporated (NASDAQ:ADBE), Intel Corporation (NASDAQ:INTC), and Sony Corporation (NYSE:SNE).

Stock Price Performance: During June 15, 2011 to July 18, 2011, the stock price had risen $2.85 (12%) from $23.74 to $26.59. The stock price saw one of its best stretches over the last year between October 4, 2010 and October 13, 2010 when shares rose for eight-straight days, rising 6% (+$1.40) over that span. It saw one of its worst periods between April 7, 2011 and April 18, 2011 when shares fell for eight-straight days, falling 4.3% (-$1.11) over that span. Shares are down $1.32 (-4.73%) year to date.

(Source: Xignite Financials)

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