MicroStrategy Earnings Are on Deck

MicroStrategy (Nasdaq: MSTR  ) is expected to report Q2 earnings around July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MicroStrategy's revenues will wither -1.9% and EPS will wither -40.0%.

The average estimate for revenue is $139.2 million. On the bottom line, the average EPS estimate is $0.39.

Revenue details
Last quarter, MicroStrategy reported revenue of $130.2 million. GAAP reported sales were 5.9% lower than the prior-year quarter's $138.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.46. GAAP EPS of $4.57 for Q1 were much higher than the prior-year quarter's $0.02 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 72.4%, 180 basis points worse than the prior-year quarter. Operating margin was -6.7%, 790 basis points worse than the prior-year quarter. Net margin was 39.6%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $579.1 million. The average EPS estimate is $1.71.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 214 rating the stock outperform, and 30 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give MicroStrategy a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $117.88.

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