Microsoft (MSFT) Report Strong EPS and Revenue

MSFT Microsoft

Microsoft released the first quarter earning report for the quarter that ended in September. Earnings and revenue beat expectations but Azure growth and guidance disappoint investors. The revenue increased by 11% to $50.1 billion beating the analyst’s expectations of $49.61 billion. In the same quarter the previous year, the company reported $45.32 billion.

The earnings came up to $17.56 billion which is $2.35 per share below the $2.71 EPS reported in the same quarter in 2021. Wall Street consensus was for earnings per share of $2.31.

PC revenue came at $13.3 billion almost unchanged from last year but beating the expectations of $13.12.

Intelligent Cloud business sector revenue for Q1 came at $20.3 billion, ($16.96 billion in Q1, 2021) below the forecasts of $20.46 billion.

Azure sector revenue increased 35% in Q1, compared with 40% growth in the Q4, 2021 quarter. The expectation was for a growth of 36.46%.

The Productivity and Business Processes sector revenue came at $16.5 billion.

Xbox revenue dropped 3%.

Microsoft for the second fiscal quarter or the final quarter of 2022, guidance is for revenue of $52.35 billion to $53.35 billion below the consensus estimates of $56.16 billion.

Microsoft Price

Microsoft stock closed 1.38% higher at $250.66, and the market cap now is at $1.84 trillion. The price to earnings ratio is at 25.99. MSFT stock price managed to rebound from its lowest level since January 20, 2021, on October 13, 2022. The bounce sends the price to today’s high is also which is also a three-week high.

On the upside, the initial resistance stands at 254.19 the top from September 14. Bulls in order to take control of the stock need to reclaim the 100-day moving average at $251.61. Microsoft might enjoy a sustained rally unless the stock can break above the 100-day moving average at $258.53.

On the downside, first support for MSFT stands at $245.63 the daily low. In case the bears break below $234.80 which is the low from October 21, we might see a sharp correction towards $219.13 the low from October 13.

The stock reached an all-time high at $349.67 back in November 23, 2021, and has a 52-week trading range between $219.13 to $349.67.

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