Microsoft Corporation shares initially moved lower in the aftermath of its third quarter financial results, but they recovered on Friday following new guidance and analyst upgrades. Revenue rose 15.6% to $26.82 billion – beating consensus estimates by $1.05 billion – while earnings per share of 95 cents beat consensus estimates by 10 cents per share. The strongest growth came from server and cloud services, which grew 20%.
On its conference call, the company provided fourth quarter revenue guidance of $28.8 billion to $29.5 billion, which was higher than the $28.08 billion consensus estimate. JPMorgan analysts upgraded the stock from Neutral to Overweight and increased their price target to $110 per share, which represents a significant premium to the current market price. Additional analysts could weigh in on the results next week and provide potential catalysts for traders. (For more, see: Microsoft Jumps After Earnings Beat.)
Microsoft shares moved higher following its third quarter financial results, but traders will be closely watching these key levels ahead. …read more
Read more here: Microsoft Stock Breaks Out Toward Top of Channel