business newsAs Microsoft Reports, Bet on More Big Tech Movement
By
Andrew Keene
Jan 24, 2013 2:24 pm
Areas of focus for earnings predictions included sales figures for the Microsoft Surface, which debuted in late October, and the Windows 8 platform.
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Redmond, Washington-based tech giant Microsoft (NASDAQ:MSFT) is scheduled to report earnings today with consensus analyst estimates predicting earnings per share of $0.75 on revenue of $21.53 billion.
Areas of focus for earnings predictions included sales figures for the Microsoft Surface, which debuted in late October, and the Windows 8 platform. Surface numbers are generally predicted to be soft, with 500,000 to 600,000 units forecasted to have moved. While this puts the Surface well behind other tablets like Google's (NASDAQ: GOOG) Nexus, Samsung's (PINK:SSNLF) Galaxy, the Kindle (NASDAQ:AMZN), and the iPad (NASDAQ:AAPL), the device has a high profit -- over 50%.
Windows 8 is more complicated. Late last year, we saw finger-pointing between Microsoft and its device manufactures as to the cause of weaker-than-expected sales numbers. Subsequently the platform gained a foothold in the federal space with a $617 million Department of Defense contract. It also appears to be a casualty of declining PC sales; these are down 6.4% since Q4 2011. Consumer research shows Windows device sales dropped more than 20% in that same period.
My trade: Feb 28 Straddle
Risk: $125 per 1 lot
Reward: unlimited in theory
Breakeven: $26.75 and $29.25
Areas of focus for earnings predictions included sales figures for the Microsoft Surface, which debuted in late October, and the Windows 8 platform. Surface numbers are generally predicted to be soft, with 500,000 to 600,000 units forecasted to have moved. While this puts the Surface well behind other tablets like Google's (NASDAQ: GOOG) Nexus, Samsung's (PINK:SSNLF) Galaxy, the Kindle (NASDAQ:AMZN), and the iPad (NASDAQ:AAPL), the device has a high profit -- over 50%.
Windows 8 is more complicated. Late last year, we saw finger-pointing between Microsoft and its device manufactures as to the cause of weaker-than-expected sales numbers. Subsequently the platform gained a foothold in the federal space with a $617 million Department of Defense contract. It also appears to be a casualty of declining PC sales; these are down 6.4% since Q4 2011. Consumer research shows Windows device sales dropped more than 20% in that same period.
My trade: Feb 28 Straddle
Risk: $125 per 1 lot
Reward: unlimited in theory
Breakeven: $26.75 and $29.25
No positions in stocks mentioned.
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