Photo: Flickr/Kevin Krejci
Microsoft reports earnings after the bell today, and we’ll be on hand to cover them live.Wall Street is expecting $17.26 billion in revenue, up 6% from last year, and EPS of $0.68, up about 10%.
That would be in line with growth in the last few quarters — decent for a company of Microsoft’s size, but not spectacular.
PC sales grew about 3% during the quarter, which is a positive change from recent quarters.
But Microsoft has beaten earnings estimates during its last several quarters because of Office 2010, and that product is now more than a year old. Microsoft hasn’t had any huge new product releases since then. So this quarter the company will have to rely heavily on its more obscure workhorse businesses, like Windows Server and Dynamics.
The Xbox will probably also be a highlight, as Gears of War 3 went on sale right at the end of the quarter and sold more than 3 million copies in its first week, and Kinect is still less than a year old.
Investors will be scouring the report to see if the Bing-Yahoo deal is finally beginning to pay off.
Here’s what the street is expecting, via Yahoo Finance and Brent Thill at UBS:
- Revenue: $17.26B
- EPS: $0.68
- Windows: $5.0B in sales, +4%
- Business Division (mostly Office): $5.4B, +6%
- Server & Tools: $4.3B, +9%
- Entertainment & Devices (Xbox): $1.9B, +8%
- Online (Bing & MSN): $610m, +16%.
- Unearned revenue: $15.7B, -8%. This is an important metric because it shows how well Microsoft is doing selling long-term contracts to big businesses.
We’ll be on hand for live coverage as the release crosses the wire around 4 pm ET, and for the earnings call at 5:30.