Microsoft 4th Quarter Earnings Preview

<h4><strong>Introduction</strong></h4>
<p>This week will be an interesting one for earnings season as Microsoft (MSFT), the first member of the Trillion Dollar Club (known as the 4-comma club), will release its Q4 result on <strong>22nd July 2020 after US market hours</strong>. In Quarter 3, reported in late April, Microsoft beat Wall Street EPS and profit expectations as lock-downs boosted revenue by 15% to $35.02 billion and earnings per share to $1.40.</p>
<p>The coronavirus outbreak and subsequent lock-downs has boosted the company as most businesses accelerated and enhanced their Azure subscription, Microsoft’s Intelligent Cloud business. Most analysts predict that the company will see a steady improvement of revenue as Microsoft continues to pour money into their cloud infrastructure. Analysts remain bullish on Microsoft stock prospects even though the market share price has rallied more than 30% in the year 2020 with market capitalization at $1.6 trillion.</p>
<p>Microsoft Corp. will publish fiscal year 2020 fourth-quarter financial results after the close of the market on Wednesday, July 22, 2020. The tech giant is expected to report adjusted <strong>earnings per share of $1.37</strong> (source: Yahoo finance), unchanged as compared to the prior-year quarter, according to third-party consensus analyst estimates. Revenue is projected at <strong>$35.54 billion</strong>, up 5.50% from a year ago ($33.70 billion in revenue).</p>
<h4><strong>Technical Analysis</strong></h4>
<p>It has been a bullish year for Microsoft (MT5 symbol: #Microsoft). Its price reached an all-time high at <strong>$216.63</strong> on 9th July 2020 and then slightly declined (closing July 21 at <strong>$208.95</strong>). The bullish momentum for technology stock remains high. The immediate support is at <strong>$201.21</strong> followed by support at 50-DMA at <strong>$194.31</strong>. The only resistance is at a historic high of <strong>$216.36</strong>. Currently, the price movement is still observed in the ascending channel. The RSI has declined from overbought zone and is currently at 58.65, still in the bullish territory.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/07/MicrosoftDaily-22-july.png"><img class="aligncenter size-large wp-image-152905" src="https://analysis.hotforex.com/wp-content/uploads/2020/07/MicrosoftDaily-22-july-1024×656.png" alt="" width="696" height="446" srcset="/wp-content/uploads/2020/07/MicrosoftDaily-22-july-1024×656.png 1024w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july-300×192.png 300w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july-768×492.png 768w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july-696×446.png 696w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july-1068×684.png 1068w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july-656×420.png 656w, /wp-content/uploads/2020/07/MicrosoftDaily-22-july.png 1386w" sizes="(max-width: 696px) 100vw, 696px" /></a></p>
<p>&nbsp;</p>
<p><strong>Tunku Ishak Al-Irsyad</strong></p>
<p><strong>Market Analyst</strong></p>
<p><strong>HF Educational Office – Malaysia</strong></p>
<p><strong>Disclaimer: </strong>This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.</p>