Microsoft Trending Lower Ahead Of Q2 Earnings Report

Microsoft Corporation (NASDAQ: MSFT) reports Q2 earnings after the market close on Monday. Analysts expect revenue of $26.33 billion with EPS of $0.71.

Nomura analyst Rick Sherlund indicated that there may be some confusion due to restructuring charges and that some revenue may need to be deferred with certain Windows 10 enhancements being offered free of charge.  Sherlund maintained a Buy rating on the stock.

FBR & Co. analyst Daniel H. Ives maintained an Outperform rating and noted that “recent restructuring efforts should make it a ‘leaner and meaner’ technology giant over the coming years.”

From a technical perspective, CMT Christian Tharp thought that Microsoft “has been in a slow drift lower since the end of last year and a good earnings announcement could help to break the slide.”

TradeOutLoud CEO Anka Metcalf told Benzinga that Microsoft has shown a “strong and intact uptrend on major time frames” which suggested that a “strong earnings report [with] a trigger over $47.40 (a monthly buy set-up) right off the 20 sma might bring in more buying pressure and continue the strong trend with an open void back into last year's high of $50.00 area."

Microsoft recently traded at $46.64, down 1.14 percent.