Microsoft Earnings Preview: Analysts Expect Higher EPS, Revenue

Microsoft (NASDAQ: MSFT) announces its next round of earnings this Thursday, October 20, 2011. Get prepared with Benzinga's ultimate preview for Microsoft's first quarter earnings.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 68 cents/share and revenues of $17.25 billion. Microsoft's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 62 cents/share on revenues of $16.2 billion. We'll have to wait for Thursday to see if Microsoft has accomplished the estimated 9.7% rise in EPS and 6.5% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Microsoft were trading at $27.27. Since January 1st, shares of Microsoft have declined 0.4%. For a full 12 months, the return has risen by 7.3%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Microsoft is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Microsoft's peers.

• Apple (NASDAQ: AAPL): Moderate Buy with a $7.79 recent quarter EPS
• Adobe Systems (NASDAQ: ADBE): Hold with a $0.44 recent quarter EPS
• Google (NASDAQ: GOOG): Moderate Buy with a $8.33 recent quarter EPS
• Hewlett-Packard Company (NYSE: HPQ): Hold with a $1.10 recent quarter EPS

Microsoft is in the computer software industry, which has experienced price/earnings growth of 3%.

Finally, a description of the company's main areas of operation: Microsoft develops, licenses, and supports a range of software products and services for a variety of computing devices.

Take Action:

There is your peek into Microsoft's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.

• To see up-to-date news on Microsoft, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here