Here's What The Buy Side Expects From Microsoft On Tuesday

Jul.22.14 | About: Microsoft Corporation (MSFT)

Summary

Microsoft Corp. is set to report FQ4 2014 earnings after the market closes on Tuesday, July 22nd.

Contributing analysts on the Estimize.com platform expect Microsoft to beat the Wall Street consensus by 5c per share and come in $176M under the Street's revenue consensus.

In Tuesday's report look for Microsoft to comfortably beat the Street's consensus on the bottom line.

Microsoft Corp. (NASDAQ:MSFT) is set to report FQ4 2014 earnings after the market closes on Tuesday, July 22nd. Shares of Microsoft have steadily been advancing higher since the start of 2013 and have performed well under the stewardship of newly appointed CEO Satya Nadella. Mr. Nadella's focus on enterprise services and his background in cloud computing have investors confident that he is the right man to take Microsoft forward. News of 18,000 job cuts in Microsoft's recently acquired Nokia phones segment pushed company stock 3% higher last week. Look for a detailed layout of the restructuring plans in Tuesday's report.

Click to enlarge

Source: Estimize.com

This quarter 64 contributing analysts on Estimize.com have come to a consensus earnings expectation of 65c EPS and $21.913B in revenue compared to a consensus of 60c EPS and $22.089B from Wall Street. This quarter contributing analysts on the Estimize.com platform expect Microsoft to beat the Wall Street consensus by 5c per share and come in $176M under the Street's revenue consensus.

Click to enlarge

Source: Estimize.com

This quarter contributing analysts on the Estimize.com platform are expecting Microsoft to handedly beat the Wall Street earnings consensus. However, the Estimize community also expects Microsoft to come up short on revenues.

Click to enlarge

Source: Estimize.com

Estimize.com ranks and allows the sorting of analysts by accuracy, the analyst with the lowest error rate on Microsoft is an anonymous independent financial research professional who goes by the username saxorama35. Over 2 previously scored estimates on Microsoft saxorama35 has averaged an error rate of 1.8%. Estimize is completely open and free for anyone to contribute, and the base of contributing analysts on the platform includes hedge fund analysts, asset managers, independent research shops, non professional investors, and students.

The Estimize consensus was more accurate than the Wall Street consensus 65% of the time last quarter on the coverage of nearly 1000 stocks. A combination of algorithms ensures that the data is not only clean and free from people attempting to game the system, but also weighs past performance and many other factors to gauge future accuracy.

Click to enlarge

Source: Estimize.com

Contributing analysts on the Estimize.com platform are forecasting that on Monday Microsoft will report earnings a penny behind earnings of the same quarter of last year and for revenue to increase by $2.013B (10%) on a year-over-year basis. Sentiment around Microsoft is very high at the moment, in Tuesday's report look for Microsoft to comfortably beat the Street's consensus on the bottom line and potentially share more information about the Nokia segment restructuring or perhaps divulge new plans to further expand the company's enterprise service offerings.

Disclosure: None.