Earnings Previews: Microsoft Corporation 4Q 2017, eBay Inc 2Q 2017

The eBay 2Q 2017 and Microsoft 4Q 2017 earnings reports are set to be released on Thursday after closing bell.

Microsoft 4Q 2017 earnings
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Microsoft 4Q 2017 earnings

Wall Street is expecting Microsoft 4Q 2017 earnings at 61 cents per share on a GAAP basis and 71 cents per share on a non-GAAP basis. In the year-ago quarter, the tech giant posted adjusted earnings of 69 cents per share.

Analysts are projecting $24.3 billion in revenue, compared to $22.6 billion in the fourth quarter of 2017. The total revenue estimate includes expected contributions of $8.4 billion from the company’s Productivity and Business Solutions segment, $8.6 billion from the company’s More Personal Computing segment, and $7.32 billion for the Intelligent Cloud business.

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Azure, Microsoft’s cloud business, is becoming increasingly important as Wall Street turns its attention to cloud computing and the cloud transition by legacy names such as Microsoft. The company hasn’t previously broken Azure out separate from the Intelligent Cloud segment, although Canaccord Genuity analysts believe the company might finally answer calls to do so in the results to be released on Thursday.

One major change that is coming in Microsoft’s earnings reporting practices is the new revenue recognition standards. However, CFO Amy Hood clarified recently that the new revenue recognition won’t make an appearance on the company’s financial reports until the next quarter, which will be the first quarter of the company’s fiscal 2018.

Ahead of the Microsoft 4Q 2017 earnings release, the company’s stock closed up 0.76% at $73.86 on Wednesday.

eBay 2Q 2017 earnings
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eBay 2Q 2017 earnings

Analysts expect eBay 2Q 2017 earnings of 45 cents per share on $2.3 billion in sales. The online marketplace firm reported earnings of 43 cents per share in last year’s second quarter. It guided for $2.28 billion to $2.32 billion in net revenues and earnings of 43 cents to 45 cents per share when it released its first-quarter numbers.

In the first quarter, eBay reported Marketplaces gross merchandise volume of $20.9 billion. It also said it added 2 million active buyers, and Wall Street is looking for the company to build upon this momentum observed during the first quarter. eBay is also expected to have a strong second half of the year, especially since Shopify announced plans to add the company as a sales channel in the fall. However, the company’s second-quarter guidance proved to be the big weak spot in its first-quarter earnings report, so investors and analysts will be closely watching that in Thursday’s report.

Going into the eBay 2Q 2017 earnings report, the company’s shares closed up 0.76% at $37.08 on Wednesday.