Earnings Preview: Analysts Expect Microsoft Revenue, Earnings to Dip from Previous Quarter

It's time to gear up for Microsoft MSFT earnings! Keep your head in the game: The company releases its next round of earnings this Thursday, July 21, 2011.

Want to skip the homework and get all the facts in one place? We thought so. Here is your everything-that-matters guide for this Thursday's fourth quarter earnings announcement.

Let's Do the Numbers:

Analysts are looking ahead to a positive EPS reading of 58 cents per share and revenues of $17.25 billion. We'll have to wait for Thursday to see if Microsoft has accomplished the estimated 124% rise in EPS and 108% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q3	Q2	Q1	Q4
EPS Estimate	$0.56	$0.68	$0.55	$0.47
EPS Actual	$0.56	$0.77	$0.62	$0.51

Stock Performance:

As of July 14, 2011, Microsoft's current share price was $26.47. Shares are down 4% year to date. For a full 12 months, the return has risen by 9.9%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Microsoft is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Microsoft compares to rivals in the same sector? Here are a few of the company's peers.

• Apple AAPL: Moderate Buy with a $6.40 recent quarter EPS
• Adobe Systems ADBE: Hold with a $0.40 recent quarter EPS
• Google GOOG: Moderate Buy with a $7.66 recent quarter EPS
• Hewlett-Packard Company HPQ: Hold with a $1.24 recent quarter EPS

Finally, a description of the main business areas of the company, in case you need a little refresher: Microsoft develops, licenses and supports a range of software products and services for a variety of computing devices.

Take Action:

Now that you've gotten an advanced peak at Microsoft's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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