Microsoft's earnings to exceed Wall Street's expectations on growth from the cloud, Pacific Crest predicts

Microsoft CEO Satya Nadella delivers a keynote address during the 2014 Microsoft Build developer conference on April 2, 2014 in San Francisco, California.
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Pacific Crest on Tuesday predicted Microsoft would exceed earnings estimates from Wall Street. The research firm reiterated an overweight rating on the tech giant.

"We expect another solid quarter when Microsoft releases earnings results this Thursday, which should reinforce our bullish stance on the company's progress in pivoting from laggard to leader in cloud, digital and artificial intelligence," equity analyst Brent Bracelin wrote in a note to clients.

He believes Microsoft's cloud business could become a game changer for the company in the years ahead, with the potential for organic revenue growth and margins to continue to improve.