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Microsoft eyed to benefit from accelerated digitisation in quarterly earnings

Analysts are estimating EPS of US$1.54 for the quarter alongside revenues of US$35.7bn, with the computing giant's outlook for the Christmas quarter also likely to draw attention as it prepares to launch its new generation of Xbox consoles

Microsoft Corporation - Microsoft eyed to benefit from accelerated digitisation in quarterly earnings

Microsoft Corp (NASDAQ:MSFT) is due to report its third quarter earnings later on Tuesday, with the trajectory expected to be a positive one for the computing giant as it continues to benefit from increased digitisation.

For the quarter, the company has previously projected revenues for its productivity and business processes division of between US$11.65bn-US$11.9bn, US$10.95bn-US$11.35bn from more personal computing and US$12.55bn-US$12.8bn from its intelligent cloud segment. Microsoft has also said it will include a US$900mln non-cash benefit as a result of an adjustment in the useful life of certain hardware.

For the company as a whole, analysts are estimating earnings per share (EPS) of US$1.54 for the quarter alongside revenues of US$35.7bn. The revenue will mark a decline from the previous quarter, where Microsoft reported US$38bn, up 13% year-on-year and above forecasts of US$36.4bn. However, the EPS figure is set to surpass the previous quarter’s number of US$1.46, which beat estimates of US$1.38.

A key area of focus in the outlook statement is likely to be the company’s next quarter, which covers the key Christmas period. The upcoming release of Microsoft’s latest generation of its Xbox video games consoles will be one area of possible upside, as well as increased market share for its Azure cloud computing business and volume gains and pricing of its Office 365 software.

Shares in Microsoft were 0.8% higher at US$211.79 in pre-market trading in New York on Tuesday morning.

Quick facts: Microsoft Corporation

Price: 214.36 USD

Market: NASDAQ
Market Cap: $1.62 trillion

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