Microsoft Earnings Preview: Get Ahead of the Analysts

Microsoft (NASDAQ:MSFT) will report earnings after markets close on Thursday, July 18th. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.

Here is your Cheat Sheet to Microsoft Earnings:

Earnings Expectations: Analysts expect earnings of $0.75 per share on revenues of $20.79 billion. Currently, the company’s P/E ratio stands at 18.41.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.7 to a profit $0.68. For the current year, the average estimate is a profit of $2.75, which is the same as the estimate ninety days ago.

Earnings Trends:

Here’s how Microsoft has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012
Revenue ($) in millions 58,437 62,484 69,943 73,723
Diluted EPS ($) 1.62 2.10 2.69 2.00

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 18,059.00 16,008.00 21,456.00 20,489.00
Diluted EPS ($) -0.06 0.53 0.76 0.72

Past Performance:
Microsoft has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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