Microsoft 4Q Earnings Pregame Scorecard

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Last quarter Microsoft (NASDAQ:MSFT) beat estimates by 3 cents per share and it is up again on Thursday, July 19, 2012.

Expectations

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Analysts currently expect Microsoft to come in with earnings of 63 cents per share on revenues of $18.14 billion. Analyst estimates range from 58 cents per share to 70 cents per share. Over the past two months, the average estimate has moved down from 66 cents.

Last Quarter's Results

In the third quarter, profit fell 2.4% to $5.11 billion (60 cents a share) from $5.23 billion (61 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 6% to $17.41 billion from $16.43 billion.

Stock Ratings

Analysts are bullish on the stock as 19 analysts rate it as a buy and there are no sell ratings. Analyst sentiment has been waning recently, as the average rating has dropped slightly over the past three months.

Stock Movement

The stock fell $2.10 per share between May 7, 2012 and June 4, 2012. Looking at change over the last three months, April 18, 2012 and July 13, 2012, the stock price fell $1.75 (-5.6%), from $31.14 to $29.39.

Company Fundamental Trends On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.3% in the fourth quarter of the last fiscal year, 7.3% in the first quarter and 4.7% in the second quarter before increasing again in the third quarter. After negative results the last two quarters, the company has a chance to recover during the upcoming earnings period. Net income fell 0.2% during the second quarter and yet again in the third quarter.

Summary

Reporting Period: 4Q

Date of Release: Thursday, July 19, 2012

EPS: 63 cents

Revenue Estimate: $18.14 billion

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)