What To Expect From Microsoft On Tuesday

Microsoft Inc.
MSFT
is scheduled to report earnings after Tuesday’s close. The stock is trading near its record high of $261.78. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $1.76/share on $41.03 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.86/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company is firing on all cylinders and continues to innovated and expand its core business as the world continues to evolve. You can clearly see that in the company’s ability to grow both its top line revenue and bottom line earnings nicely in each of the past four quarters.

Closer Look At The Technicals:

Technically, the stock is acting great as it continues to hit new record highs. The barely budged earlier this year when other tech stocks “corrected” which clearly shows how strong the demand is for the stock right now. The bulls want to see the stock stay above $224- which is an important level of support to watch.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclaimer:

Microsoft is a position in the FindLeadingStocks.com portfolio