Microsoft Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Microsoft's fiscal year 2024 earnings are set to be announced soon, and analysts have been busy revising their forecasts to reflect the company's strong performance. The tech giant's revenue, operating income, net income, and diluted earnings per share (EPS) have all shown significant growth compared to the previous fiscal year, with the growth rates generally in line with market expectations. Here's a closer look at the key factors driving these analysts' revised forecasts and how they compare to the consensus estimates.



Revenue Growth Driven by Cloud Services and Gaming

Microsoft's revenue for fiscal year 2024 is expected to reach $245.1 billion, an increase of 16% (up 15% in constant currency) compared to the previous fiscal year. This growth is driven by strong performance across the company's segments, particularly Intelligent Cloud and More Personal Computing.

* Intelligent Cloud: Server products and cloud services revenue increased by 21% (up 22% in constant currency), driven by Azure and other cloud services revenue growth of 29% (up 30% in constant currency). This significant growth in Microsoft's cloud services has likely led analysts to revise their forecasts upward.
* More Personal Computing: Xbox content and services revenue increased by 61%, driven by the 58-point net impact from the Activision acquisition. This strong performance in gaming services has also contributed to analysts' revised forecasts.



Operating Income and Net Income Growth

Microsoft's operating income for fiscal year 2024 is expected to reach $109.4 billion, an increase of 24% (up 22% non-GAAP and up 21% in constant currency) compared to the previous fiscal year. Net income is expected to reach $88.1 billion, an increase of 22% (up 20% non-GAAP) compared to the previous fiscal year. These growth rates are higher than market expectations, suggesting that analysts have a more optimistic outlook on Microsoft's earnings.

Diluted EPS Growth

Microsoft's diluted EPS for fiscal year 2024 is expected to reach $11.80, an increase of 22% (up 20% non-GAAP) compared to the previous fiscal year. This growth is in line with market expectations and is driven by the strong performance across the company's segments.

Analysts' Revised Forecasts vs. Consensus Estimates

* Revenue: The analysts' revised forecast of $245.1 billion is slightly higher than the consensus estimate of $244.5 billion, indicating a more optimistic outlook on Microsoft's revenue growth for the fiscal year 2024.
* Operating income: The analysts' revised forecast of $109.4 billion is significantly higher than the consensus estimate of $105.5 billion, suggesting that the analysts expect Microsoft's operating income to grow at a faster pace than previously anticipated.
* Net income: The analysts' revised forecast of $88.1 billion is also higher than the consensus estimate of $86.5 billion, indicating that the analysts have a more bullish outlook on Microsoft's net income growth for the fiscal year 2024.
* Diluted EPS: The analysts' revised forecast of $11.80 is higher than the consensus estimate of $11.65, suggesting that the analysts expect Microsoft's earnings per share to grow at a faster pace than previously anticipated.

In conclusion, Microsoft's fiscal year 2024 earnings are expected to show strong growth across the company's segments, particularly Intelligent Cloud and More Personal Computing. Analysts have revised their forecasts to reflect this growth, with a more optimistic outlook on the company's revenue, operating income, net income, and diluted EPS compared to the consensus estimates. As Microsoft's earnings call approaches, investors will be closely watching the company's performance and guidance for the future.