Moo Earnings wrote a post · Jan 21, 2023 04:08

Microsoft Q2 FY23 Earnings Preview — Betting the % change in closing after-hours price to win!

Bet Game

Place your Bet on MSFT's percentage change in closing after-hours price (e.g.+3%) of January 24 ET by 7:00 PM, January 24 ET. The mooer with the closest bet will win 300 points!

Lucky Draw

The 10th, 20th, 30th, 40th and so on mooers to comment will get 30 points.

MSFT's Q2 FY23 Earnings Conference Call is to be hosted on January 24 ET, after the U.S. markets close! The consensus estimate for revenue is expected at $52.9 billion, indicating a nearly 2.32% year-on-year (YoY) increase. The EPS is estimated at $2.29 for this quarter, which suggests a decline of 7.6% YoY.

Microsoft Teams, as the offering of workspace & home communication solutions, might have acted as a tailwind in the to-be-reported quarter. The business' user growth may have been driven by the continuation of the hybrid work model. Also, Teams' expanding features have been helping Microsoft win market share in the enterprise communication area against Zoom. Another momentum for Microsoft is the strong adoption of Dynamics 365, whose revenue growth is expected to be in the mid-to-high teens range in Q2 according to the company.

Microsoft's intelligent cloud services have been a key growth driver over the past quarters, and investors shall be continually watching the metric like a hawk. For the upcoming Q2 release, Zacks consensus estimate for the business' revenue is $21.4 billion, indicating a growth of 17% YoY. Comparing the figure in Q1 totaled $20.3 billion, up 22% YoY. The intelligent cloud business' growth may still be impressive, but it seems to slow down.

Moreover, Microsoft joined other Big Tech companies in massive layoffs this week and let go of 10,000 employees. As one of the market leaders, Microsoft's earnings call may provide more details for its ongoing business and future direction.

Target Price - Period: Last 3 months; Number: 30 analysts