Earnings on Tap: Google, Microsoft

Technology majors  Microsoft (MSFT) and  Google (GOOG) are each set to deliver quarterly results when they report after the bell Thursday. 

Wall Street analysts expect Google to report second-quarter earnings of $9.04 per share compared with $8.42 in the year-ago period.

Investors will be looking for the company to continue to build on its impressive performances after it beat analysts' estimates thrice in the past four quarters. They will also be looking for updates from management on the new versions of Google Maps and Google+ as well as some acquisitions that the company made in the second quarter.

Google's Motorola Mobility division will also be in focus. The division announced the launch of a new line of smartphones during the quarter.

After a 30% year-to-date gain in its share price, Google currently trades above Morningstar's fair value estimate. Morningstar analyst Rick Summer wrote in a recent Analyst Report he expects revenue to increase more than 13% annually during the next five years.

Will Microsoft's Reorganization Pay Off?
For the fourth quarter, consensus estimates are calling for Microsoft earnings of $0.74 per share compared with adjusting earnings of $0.73 a year ago.

The company may provide investors with an update to Windows 8. Microsoft unveiled Windows 8.1 in June, citing the declining PC market for the lackluster performance of its touch-enabled operating system. Investors will also look for more information on the reorganization announced earlier this month.

After almost a 34% gain in its stock price year to date, Microsoft trades around Morningstar's fair value estimate. Morningstar analyst Norman Young wrote in his Analyst Report that while the conventional wisdom regards Microsoft as a technology giant in decline, there are glimmers of a more cohesive strategy through its Windows products.