Shares of Microsoft (MSFT) are up 23 cents, or 0.9%, at $27.84 heading toward the company’s fiscal Q2 report tonight.
Analysts are modeling $21.56 billion in revenue and EPS of 75 cents. There will of course be a great deal of emphasis placed on what Microsoft has to say about sales of Windows 8 licenses and Surface tablet computer sales since their debut on October 26th.
Analysts continue to adjust estimates in advance of the call. Pacific Crest’s Brendan Barnicle this morning reiterated a Sector Perform rating on the stock, writing “While Microsoft remains dominant in Windows and Office, those products are slow-growing, at best, and could even face erosion based on industry changes.”
“As the IT industry adjusts to the impact of cloud computing, it is unclear how Microsoft will respond, and so is the impact on its model. Those changes do not look favorable for Microsoft or its shares. So, at best, MSFT is likely to perform just in line with its peers.”
Barnicle cut his estimate for the quarter to $21.4 billion and 66 cents from a prior $21.62 billion and 67 cents.
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