Next week is a huge week for earnings announcements with more than 500 companies scheduled to unveil their financial report cards. Microsoft Corporation (MSFT) could be the biggest name in the bunch. The software powerhouse will release its second quarter numbers for fiscal year 2023 after the market closes on Tuesday, January 24th. Wall Street forecasts consensus earnings per share (EPS) of $2.31 with revenue hitting $52.99 billion. (1) The tech company topped the investors’ EPS expectations in three of the last four quarters.
MSFT’s share price recently ended a short-term downtrend; although, it was hit with a bout of profit taking on Wednesday, right as it made contact with its 50-day moving average. The key technical benchmark could prove to be a lid that restrains upside for Microsoft’s share price. Another bullish earnings beat might not be enough to push MSFT beyond the 50-day without robust, upgraded guidance for the remainder of 2023. If management treats traders to better than expected forward looking statements, then the 200-day moving average of $256 appears to be the most logical target.
A failing financial report, combined with a downgraded future, would likely jam MSFT’s price to $220ish in the aftermath of next Tuesday’s news. If it’s really bad, then a trip to its 52-week low of $213.43 would be in play. Anything below that, and it is timber, look out below.
1 – https://finance.yahoo.com/quote/MSFT/analysis?p=MSFT