Teams App, Azure, Microsoft 365, and many more!
Tomorrow on Oct 26, 2021, and aftermarket, Microsoft Corporation (MSFT) will publish its earnings reports which will be for the fiscal Quarter ending September 2021. According to Zacks Investment Research, and based on 13 analysts' expectations, EPS was estimated at $2.06 for this quarter, while reported EPS for the same quarter last year was $1.82. Estimated EPS shows a 13.2% increase from the year-ago quarter’s reported figure. The company earnings surprise in the past four quarters on average was positive 16.9%.
Microsoft does not need any introduction. As you know, this tech giant has a strong presence in several high-growth industries, and since the new CEO, Mr. Satya Nadella leading the company, this presence becomes even wider. And now, for this quarter the question is "can Mr. Satya Nadella still surprise the investors, after the 735% increase in the stock price, since 2014 that he took the office, or not?"
Even if the company activities are so wide, still a few factors are playing the role in the company income. One of these factors that we have to watch that closely, is its cloud computing platform, Azure, and analyst are expecting to see the improvement in this part that can help the company revenue and income as well. After the Covid-19 crisis, many companies shifted to the new systems, accelerating digital transformation globally, and it is good news for Azure. It is actually the same reason that we are expecting to see more sales and members for its Teams App, as many companies already started to work from home and hybrid work innovation. Microsoft Teams already had 250 million monthly active users at the end of the fourth fiscal quarter of 2021.
After Azure and Teams App, we can mention the healthy adoption of the Microsoft Power Platform. The company’s next-generation business process automation platform reported revenue growth of 83% year over year for fiscal 2021. In addition, increasing demand for Microsoft 365 also can be another strong source of income.
From the technical point of view also it is in a clear uptrend, moving above trend line with RSI above 64. As long as it moves above 100 DMA, at $286, we can bet on higher numbers to be seen. First support set at 20 DMA $296. As Zacks also, ranks it #1 (Strong Buy), with positive reports, we expected to see the new historical records in the following weeks.
