NEW YORK (TheStreet) -- Shares of Microsoft Corp. (MSFT) - Get Report gained on Tuesday, closing up by 0.73% to $52.17, after analysts said the company's financial results could surpass estimates for the fiscal 2016 second quarter.
The technology company will report its quarterly report on Thursday after the market close.
Microsoft could post earnings of 73 cents per share on revenue of $25.75 billion, surpassing Wall Street's consensus for earnings of 71 cents on $25.27 billion in revenue for the quarter, according to estimates by Bernstein Research, Barron's reports.
The firm reiterated its "outperform" rating and $64 price target on the stock.
Analysts did warn that "we believe it is impossible to ever have 'high conviction' that results will beat Street expectations" because of the company's business assortment, Barron's noted.
Windows revenue is expected to increase sequentially, driven by Windows 10, while Microsoft Office revenue could "reaccelerate" in the consumer and commercial segments.
Gross profit margins, however, could be pressured by the rise in Office 365 subscriptions, but margins could improve in the long term, analysts mentioned, Barron's added.
Separately, Microsoft has a "buy" rating and a letter grade of A at TheStreet Ratings because of the company's solid stock performance, increase in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations.
You can view the full analysis from the report here: MSFT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.