Microsoft is expected to report a 15 percent increase in revenue to $20.74 billion, on a 12 percent rise in earnings per share, to 75 cents, according to Thomson One Analytics.
But the company faces some big challenges—namely the industrywide decline in PC sales—plus some big questions about the impact of its recent restructuring. Investors will be eager to hear about how well Surface tablets are selling and what to expect from the upcoming Xbox One launch.
"Although the PC market continues to search for a bottom, we believe Microsoft's enterprise-business continues to perform well and should enable it to roughly meet our estimates," said Stifel analyst Brad Reback, who has a "buy" rating on the stock.
"While we expect the quarter to be relatively noneventful, we note that similar to the past few quarters there could be some noise in the results (i.e., ~$780 million in Office deferrals recognized, potential inventory write-down, etc.), and given the recent run in the shares we would not be shocked if the shares take a near-term breather."