Microsoft Q2 Earnings Preview

Microsoft Corporation MSFT reports Q2 earnings after the market close on Monday. Analysts expect revenue of $26.33 billion with EPS of $0.71.

Nomura analyst Rick Sherlund indicated that there may be some confusion due to restructuring charges and that some revenue may need to be deferred with certain Windows 10 enhancements being offered free of charge.  Sherlund maintained a Buy rating on the stock.

FBR & Co. analyst Daniel H. Ives maintained an Outperform rating and noted that “recent restructuring efforts should make it a ‘leaner and meaner’ technology giant over the coming years.”

From a technical perspective, trader Christian Tharp thought that Microsoft “has been in a slow drift lower since the end of last year and a good earnings announcement could help to break the slide.”

Tharp added that if the share price pushes through the $48 level it “should lead the stock to challenge its 52-week high, while a break below $45 most likely spells trouble for the stock.”

Trader Anka Metcalf commented that Microsoft has shown a “strong and intact uptrend on major time frames” which suggested that a “strong earnings report [with] a trigger over $47.40 (a monthly buy set-up) right off the 20 sma might bring in more buying pressure and continue the strong trend with an open void back into last year's high of $50.00 area."

Microsoft Corporation recently traded at $46.66, down 1.17 percent.