SAUL LOEB/AFP via Getty Images Microsoft (NASDAQ: MSFT ) announced its Q2 earnings on Tuesday and initially the stock popped 5% as the company’s cloud business was particularly strong. However, Microsoft gave guidance during the conference call and shortly after announcing Q3 revenue guidance shares of Microsoft did a U-turn. Microsoft Q3 Revenue Guidance Productivity and Business Processes: $16.9B – $17.2B Intelligent Cloud: $21.7B – $22B Personal Computing: $11.9 – $12.3B Revenue Guidance Totals: $50.5B – $51.5B Source: Microsoft Q3 Outlook Slides Q3 Wall Street estimates for Microsoft ranged from $51.25B on the low end to $57.33B on the high end – with a consensus of $52.67B (6.7% growth) for the upcoming quarter. Keep in mind, the $52.67B Q3 consensus has steadily been revised down by analysts over the past six months, meaning Microsoft’s revenue bar was already lowered – and the company is guiding underneath it. As a long term focused investor, I’m not overly concerned about the next few quarters where it appears Microsoft will miss the mark from a revenue perspective. However, start stretching Microsoft’s revenue estimates out into fiscal Q1 (September 2023) and beyond, Wall Street is expecting revenue growth to reaccelerate back into the […]
Microsoft’s Q2 Earnings Create Opportunity
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