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MSFT Up Ahead Of Earnings
Stocks are getting some relief this morning as positive earnings announcements have stimulated the market. Microsoft will report second quarter earnings after the market close tonight. Wall Street analysts consensus calls for a profit of $0.46 a share on $15.25 billion revenue. Other upcoming catalysts for the stock include the company’s upcoming analyst day on Thursday, July 29 and upgrade cycles of Office 2010 and Windows 7. The stock currently trades at 13x 2010E P/E, inexpensive compared to historical trading multiples.
LIVE Coverage Of Microsoft Earnings (Business Insider)
Join us at Silicon Alley Insider (SAI) today after the market close for live coverage and commentary of Microsoft’s June quarter earnings. For Microsoft’s 5:30pm conference call dial-in: (888) 459-9165, password: MSFT.
Wall Street Previews The Quarter And Sets Expectations (Various)
Some thoughts going into earnings tonight:
- Todd Raker at Deutsche Bank tells investors that strong PC numbers, healthy consumer adoption of Windows 7 and improved datacenter spending should drive the quarter. Given the recent stock performance, expectations are low for the quarter. A strong product pipeline (SQL Server 2010 and enterprise adoption of Windows 7) will drive revenues and unearned revenues in the second half. He reiterates his Buy rating and $35 price-target.
- Citigroup analyst Walter Pritchard believes that Microsoft’s June quarter earnings should show increased stability. There is potential for $100-250 million in revenue upside in Client revenue. He is lowering his price-target to $31 on worsening market conditions. He reiterates his Buy rating.
- Israel Hernandez at Barclays Capital believes a very solid June quarter results should provide near-term relief for shares of MSFT. However, ongoing concerns regarding the company’s inability to address the mobile opportunity keeps him at Equal Weight despite attractive valuation at current levels. He is lowering his price-target to $30 due to continued muted sentiment.
Investors Have High Hopes For Microsoft, Let’s Hope They Can Deliver (Reuters)
While Microsoft gears up to launch mobile software trying to be remotely relevant in the mobile market, shares of the stock continue to wane. Investors appear to have anticipated good news from Microsoft but are now demanding to see more from a company struggling to make its mark in the pivotal and fast-growth areas of smartphones, tablet computers and search advertising.
Apple About To Surpass Microsoft In Total Revenue Earned. Who Cares? (CNN Money)
This could be the quarter in which Apple passes Microsoft in terms of absolute revenue dollars earned. But do these two companies even compete anymore? Though Apple makes software it has essentially become a hardware business that is enabled by its software. Microsoft competes more with Oracle, SAP and Adobe than with Apple. The rivalry is something the press likes to drum up.
Investing In Tech Giants: The Lesser Of Three Evils (The Motley Fool)
Here are the three tech giants compared side-by-side: Intel, Cisco and Microsoft. Their valuations over the last decade have been cut in half. Intel has proven that it can grow through multiple environments. Microsoft is so profoundly strong financially that it can weather long-periods of competitive threat. Cisco is the least promising of the three, trading at the highest multiples with the lowest rates of return on equity and assets.
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