Softy (MSFT Earnings)
Microsoft (MSFT) is set to report Q4 (Jun) results today after the close with a call to follow at 5:30pm ET.
The CapitalIQ consensus estimate for non-GAAP EPS is to grow 6% yr/yr to $2.29 and for revenue to grow 13% yr/yr to $52.36 bln.
On June 2, MSFT lowered guidance for Q4 EPS to $2.24-2.32 from $2.28-2.35 and lowered revenue guidance to $51.94-52.74 bln from $52.4-53.2 bln. This was mostly due to FX impacts.
MSFT has 24 EPS beats in a row.
That said, MSFT broke a string of six consecutive double digit EPS beats with a very small $0.02 beat in Q3 (Mar). Let's hope that is an aberration.
Azure is the most closely watched category as it’s MSFT’s growth engine. Azure revenue growth in Q3 came in at just 46% for the second quarter in a row, down from the 50-51% growth seen in prior quarters. However, Azure was up 49% on a constant currency basis as MSFT was facing tough FX headwinds in MarQ and likely will again in JunQ.
TECHS:
MSFT has been in a downtrend for much of 2022.
Dan Niles said in a CNBC interview yesterday that he is short MSFT and last week. The stock goes into the print on its uptrend from the prior double top breakout. (make or break quarter)
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