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The Zacks Analyst Blog Highlights: Microsoft, Amazon and Netflix


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For Immediate Release

Chicago, IL - January 30, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT , Amazon AMZN and Netflix NFLX .

Microsoft (MSFT) Q2 Earnings Preview: Revenues, Cloud & More

Shares of Microsoft fell 2% Tuesday, just one day before the firm is projected to report its quarterly financial results. So, let's take a look at what investors should expect from Microsoft's earnings after the closing bell Wednesday

Quick Overview

Microsoft has expanded into everything from IoT to cloud computing in recent years, while also maintaining its strength as a software and personal computer powerhouse. MSFT came in second only to Amazon last quarter in terms of cloud market share. The company has also grown its Xbox-driven gaming division through initiatives such as its Netflix-style Game Pass.

MSFT stock closed regular trading Tuesday down 2.04% at $102.94 a share. This marked an 11.4% downturn from its 52-week high of $116.18 a share.

Q2 Outlook

Microsoft's quarterly revenues are projected to jump 12.3% from the year-ago period to hit $32.45 billion, based on our current Zacks Consensus Estimate. This would come up short of last quarter's 19% revenue growth, but match the year-ago period's 12% climb.

Meanwhile, the tech powerhouse's adjusted quarterly earnings are expected to climb 13.54% to reach $1.09 per share. Again, this would mark a sequential slowdown compared to Q1 fiscal 2019's 36% bottom-line expansion.   

Productivity & Business Processes

More specifically, MSFT's Productivity & Business Processes unit is projected to see its revenues jump nearly 13% to reach $10.096 billion, based on our current NFM consensus estimates. This division, which includes Office, LinkedIn, and Dynamics CRM, saw its revenues pop 19% last quarter.

Intelligent Cloud

MSFT's Intelligent Cloud revenues are expected to surge 19% to touch $9.295 billion. This closely watched unit surged 24% last quarter and 15% in the year-ago period.

MOre Personal Computing

Lastly, More Personal Computing is expected to see its revenues climb 7.5% to touch $13.086 billion. This would mark a downturn from last quarter's 15% jump in MSFT's largest business segment that includes Windows.

Bottom Line

Microsoft is currently a Zacks Rank #2 (Buy) based mostly on its recen t earnings estimate revision activity. Microsoft is set to report its Q2 fiscal 2019 financial results after the closing bell Wednesday. With that said, make sure to check back here for our full analysis of Microsoft's actual results.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Stocks
Referenced Symbols: AMZN , NFLX , MSFT



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