Microsoft Corp.’s cloud-computing story is likely to drive the day when the company reports earnings Tuesday afternoon.
TD Cowen analyst Derrick Wood expects Microsoft to hit the high end of its Azure outlook for the latest quarter — 26% revenue growth on a constant-currency basis — and then he’ll be watching for the company’s December-quarter outlook on the metric, with the consensus expectation looking for a 25.5% increase, he says.
“t seems like a fine line to walk and we see scenarios that could steer guidance in either direction , but our expectation is for a down-the-middle guide,” he wrote recently.What to expect Earnings: The FactSet consensus calls for $2.65 in fiscal first-quarter adjusted earnings per share, up from $2.35 in the year-earlier period.
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