A Sneak Peek of What to Expect From Microsoft Earnings Tonight

Tonight is the night. At least it is for Microsoft (Nasdaq: MSFT  ) , which is on deck to report second-quarter earnings results tonight after the close.

Last quarter, the software giant reported record first-quarter sales of nearly $17.4 billion, which resulted in $0.68 in earnings per share. This bottom line was exactly what analysts were expecting, down to the penny. The Redmond giant had reported strong Windows 7 momentum, with over 450 million licenses sold since the operating system's launch. Microsoft had also given a sneak peek of Windows 8 at its BUILD developer conference late last year.

(Analyst) survey says...
On average, analysts are expecting earnings of $0.76 per share, with estimates ranging between $0.68 and $0.80. Of the 38 analysts covering Microsoft, 14 rate it a buy and another nine think it will outperform. One of them has slapped a sell rating on it, and another 14 consider it a hold. Although I'm far from a Wall Street analyst, I also recently gave it a hold rating.

Top-line revenue is expected to be about $20.9 billion, with high and low estimates of $21.4 billion and $20.2 billion.

Blame the floods
One of the headwinds that Microsoft likely faced during the quarter was the Thai floods, whose effects have rippled throughout the PC industry. The disaster left the hard drive industry in shambles, and it's awfully difficult to sell a PC running Windows without a hard drive. Chipmaker Intel (Nasdaq: INTC  ) also recently cut guidance due to the floods.

The who's-who in tech
Speaking of Intel, the chip king is also set to report earnings tonight. That's not all, though. To round out the list of major tech giants reporting tonight, also keep an eye on IBM (NYSE: IBM  ) and Google (Nasdaq: GOOG  ) , since they'll also be putting up digits this evening.

Keep your eye on the ball
As always, you can expect some Foolish analysis to follow shortly after the results are revealed. Don't forget to keep these titans on your Watchlist to make sure you don't miss a beat. Start by adding them now.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of International Business Machines, Google, Intel, and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, Google, and Intel. Motley Fool newsletter services have recommended creating bull call spread positions in Microsoft and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1760855, ~/Articles/ArticleHandler.aspx, 8/30/2014 10:46:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement