What to expect from Microsoft, Amazon earnings Thursday




Posted on April 24, 2014 at 6:37 AM

Updated Thursday, Apr 24 at 7:12 AM

They are two of the iconic technology companies based in Seattle and, on Thursday, both Amazon and Microsoft report their latest corporate earnings after trading ends for the day.

Here's what analysts and investors will be looking for regarding Amazon:

  • The earnings per share consensus from analysts for Amazon's Q1 is 22 cents vs. 18 cents this time last year. Analysts are also expecting revenue to come in around $19.4 billion.
  • Amazon has been investing like crazy in delivery/fulfillment centers to meet the needs of its e-commerce customers. How is all that helping drive revenue growth?
  • The company also has become a leader in the cloud computing industry with its Amazon Web Services division. Amazon cuts prices to build market share; how is that paying off?
  • Amazon just released its long-rumored Amazon Fire TV set-top streaming video box. The latest speculation focuses on an Amazon-branded 3D smartphone. Any news here?

For Microsoft, it's the company's Q3 earnings, and new CEO Satya Nadella's first time to host the conference call from beginning to end. Here's what Wall Street is looking for: 

  • The consensus on EPS is 62 cents with revenue expected around $20.3 billion.
  • Nadella is continuing the "Mobile First, Cloud First" strategy begun under former CEO Steve Ballmer. With the company's purchase of Nokia's handset division set to officially close on Friday, what guidance will Nadella give regarding this issue?
  • Before ascending to the CEO office, Nadella led the company's cloud and enterprise division. Office 365 is now a subscription-based revenue driver; what's the latest on this effort?
  • With Microsoft now a hardware company thanks to the Surface and pending Nokia-based handsets, what will it say about any product updates or possible new devices?
  • How is the Windows XP end-of-tech-support process going?