Microsoft is scheduled to report Q2 results tonight after the bell with management hosting a call at 4:30 p.m. ET.

Current Capital IQ Consensus Estimate calls for Q2 EPS of $1.27 (vs $1.10 a year ago) on revenue growth of 9.9% to $35.68 bln.

MSFT typically guides on the call. At this point, the Street is forecasting Q3 EPS of $1.25 on revenues of $34.15bln.

TECHS:

MSFT goes into the report with a ~$1.3 TRILLION market capitalization, trading at about 30.2x forward P/E vs other tech bellwethers GOOGL (28x) and AAPL (22.2x).

Microsoft beats by $0.24, beats on revs  (168.04 +2.58)

Reports Q2 (Dec) earnings of $1.51 per share, $0.24 better than the S&P Capital IQ Consensus of $1.27; revenues rose 13.7% year/year to $36.91 bln vs the $35.68 bln S&P Capital IQ Consensus. 

• Revenue in Productivity and Business Processes was $11.8 billion and increased 17% (up 19% in constant currency), with the following business highlights:

  • Office Commercial products and cloud services revenue increased 16% (up 18% in constant currency) driven by Office 365 Commercial revenue growth of 27% (up 30% in constant currency)

  • Office Consumer products and cloud services revenue increased 19% (up 20% in constant currency) with continued growth in Office 365 Consumer subscribers to 37.2 million

  • LinkedIn revenue increased 24% (up 26% in constant currency)

  • Dynamics products and cloud services revenue increased 12% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 42% (up 45% in constant currency

  Revenue in Intelligent Cloud was $11.9 billion and increased 27% (up 28% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 30% (up 32% in constant currency) driven by Azure revenue growth of 62% (up 64% in constant currency)

  • Enterprise Services revenue increased 6% (up 7% in constant currency)

  Revenue in More Personal Computing was $13.2 billion and increased 2% (up 3% in constant currency), with the following business highlights:

  • Windows OEM revenue increased 18% (up 18% in constant currency)

  • Windows Commercial products and cloud services revenue increased 25% (up 27% in constant currency)

  • Surface revenue increased 6% (up 8% in constant currency)

  • Search advertising revenue excluding traffic acquisition costs increased 6% (up 7% in constant currency) Xbox content and services revenue decreased 11% (down 9% in constant currency)

If you liked this content please click the ❤️ below and/or share this post.

TOTALLY FREE Trading Packet!

Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.

This packet will explain to you in depth how I trade and how I manage my risk.

I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.

SHAMLESS PLUGS

CLICK HERE TO CHECK OUT MY 2020 PREVIEW OPINION PACKET. OVER 140 PAGES OF CONTENT AND INFORMATION AVAILABLE HERE.

Check out the latest episode of my podcast below.