Microsoft – Develops, manufactures, licenses, sells and supports software products
Microsoft (NYSE: MSFT) is scheduled to announce Q2 results at 9:30 PM GMT today. The consensus EPS estimate is $1.38 (+0.7% year-on-year) and the consensus revenue estimate is $36.55 billion (+8.4% year-on-year).
Microsoft's fiscal third-quarter proved that the company does not depend on a functional economy to find the demand for its products and services, especially regarding cloud infrastructure and off-premise software, which can benefit from the "disrupted office" trends. On June 26, 2020, Microsoft announced a strategic change in its retail operations, including closing Microsoft Store physical locations as the retail team members will continue to serve customers from Microsoft corporate facilities and remotely providing sales, training, and support. Microsoft will continue to invest in its digital storefronts on Microsoft.com, and stores in Xbox and Windows, reaching more than 1.2 billion people every month in 190 markets. The closing of Microsoft Store physical locations will result in a pre-tax charge of approximately $450 million, or $0.05 per share, to be recorded in the current quarter ending June 30, 2020. The charge includes primarily asset write-offs and impairments.
Tesla – Electric vehicles, scalable clean energy generation, and storage products
Tesla (NYSE: TSLA) is scheduled to announce Q2 results at 9:30 PM GMT today. The consensus EPS estimate is $-0.28 (+75% year-on-year) and the consensus revenue estimate is $5.31 billion (-16.4% year-on-year).
For the past 3 years, Tesla has been increasing market share by about 5% per year. Tesla’s vehicle deliveries drive most of its earning results since vehicle sales represent the main revenue stream. Shares have surged following better than expected second-quarter vehicle delivery numbers even though production levels were down 20% due to COVID-19 halting its Fremont factory for most of the quarter.
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.