Microsoft reports earnings today - what to expect? 🔌🖱

Microsoft (MSFT.US) will release its Q1 results for the third quarter of fiscal 2023 today, after the session on Wall Street. The market consensus is for revenue to exceed expectations and EPS to be in line with or slightly above previous results.

• The analysts will search the recession signal in the report so the slowly growth of Azure cloud or weak Windows/PC revenues possible will be a bearish catalysts. The other, major subject will be also AI;
• Microsoft's revenue rose 6% year-on-year to $102.9 bln in the 3Q and 4Q 2022. Revenue from the productivity & business processes segment grew 8% in the first two quarters. This trend is expected to continue in the third quarter as wel;
• Cloud revenues grew 19% in the same period driven by improved revenues from Azure and other cloud services. Consensus expects Q3 results to be at a similar level;
• PC revenue fell 11% year-on-year in the first half to $27.6 bln. This was primarily due to lower Windows and Xbox revenues. consensus assumes that the segment will see some improvement in Q3;
• Trefis estimates that Microsoft's net revenue in Q1 2023 will be about $51.43 bln USD, slightly above the consensus of $51.12 bln.  EPS is likely to be in line or slightly above expectations of $2.24.

Microsoft (MSFT.US), interval D1. The major supply has activated in $280 zone, it's level of resistance from summer 2022 highs. If the earnings will be weaker than expected, the major support  may be at 270 or 260 USD levels, where we can see 23,6 and 38,2 Fibonacci retracement of upward wave started in the October 2022. On the other hand if the financial report will be strong, with possible optimistic guidance the major resistance at $300 level may be exceed. Also 'golden cross' formation of moving averages (SMA200, SMA100) may indicate that bulls will be still strong. Source: xStation5