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What to watch for in Microsoft’s quarterly earnings report on Tuesday

Microsoft will announce earnings after market close on Tuesday, and most analysts are saying the results will show the company has taken a step backwards in the June-ending quarter (which was also the close of Microsoft’s fiscal year). 

• The company is expected to announce a decline in earnings per share (to 58¢), and its fourth quarter of declining sales (to $22.1 billion) over the last five quarters. 

• Many analysts are closely watching the progress Microsoft has made in its transition from a client-server computing company to a cloud services company. Some fear that things are moving too slowly, and that Microsoft will be punished for it in its stock price after earnings. 

• Microsoft may have engendered some optimism through its recent acquisition of LinkedIn, but it also took a $950 million charge in May to restructure its mobile business. 

[Photo: Dan Taylor/Heisenberg Media]MS