Microsoft and Johnson & Johnson Earnings Report Preview

Microsoft

Microsoft, the second largest company on Wall Street by market capitalization (after Apple) and developer of the Windows operating system and office suite, is expected to report its results for the quarter ended December 2021 Tuesday, January 25th, after market close.

Zacks forecast sales for the quarter at $50.32 billion, above that $43.08 billion in the same period last year (up 16.82%), while the return per share is expected $2.29, over $2.03 in the same quarter of the previous year (an increase of 12.81%.)

For revenue by product line for the upcoming quarter Amy Hood Microsoft Chief Financial Officer forecast growth from Q1, with business processes Segment led by Office and other software. Revenue is expected to be between $15.7 billion and $15.95 billion, up from $15.03 billion.

The Intelligent Cloud group led by azure, is expected to earn between $18.1 billion and $18.35 billion, up from $16.96 billion and others personal computers Segments that include Windows, Surface, and Xbox are forecast to go from $13.31 billion to $16.35 billion and $16.75 billion, respectively.

Meanwhile, ahead of next week’s earnings report, Microsoft caused a stir when it announced it would be taking over the video game giant Activision Blizzard Manufacturers and distributors of popular video games such as Call of Duty, World of Warcraft, Diablo and Candy Crush for $68.7 billion.

That makes Microsoft the third-largest gaming company in the world by revenue, behind only Tencent and Sony, and it’s a big bet on its entry into the Metaverse world, with the acquisition following Activision’s woes after 700 employees have been fighting sexual harassment and harassment since July had protested discrimination in 2021.

Although the profit prospects are positive, #Microsoft’s The share price is down more than 10% from the start of the year so far, a decline in line with the broader market trend, particularly for tech stocks. However, the company’s share price is falling near the key support zone at the MA200 line 293.00; If it can break, there is the nearest support in the 280.00 Zone. Conversely, if the company’s earnings are strong, it can push the company’s stock price back down to the 320.00 zone again.

 

Johnson&Johnson

Johnson & Johnson, the world’s largest and most diversified healthcare company at $437 billion, is another company to report fourth-quarter results on Monday, January 25, ahead of the market open. Zacks forecast sales of $25.26 billion, up from $22.48 billion in the same period last year (up 12.37%), while earnings per share are expected $2.12, up from $1.86 in the year-ago quarter (an increase of 13.98%). J&J’s earnings per share have beaten Zacks expectations every quarter since Q3 2012, while revenue has been lower than expected in only 2 of the last 10 quarters.

An interesting move in J&J’s fourth quarter was the CEO change earlier this month Joaquin Duato substitute Alex Gorski, who has been CEO since 2012 while the company announced plans last November to split J&J into two companies; one that focuses on consumer health. and another focused on drugs and medical devices.

J&J didn’t seem to benefit much from the fourth-quarter arrival of the Omicron strain because the J&J vaccine wasn’t popular in the United States. The proportion of J&J vaccinations is less than 4% of the total number of doses administered in the US, less than Pfizer or Moderna.

The share price of #Johnson & Johnson is below 3.4% since the beginning of the year after reaching a high of 174.00 and closed below the MA200 on Thursday, making the company’s share price trend somewhat bearish on the channel frame now.

This corresponds to the MACD, which is about to cross the 0 line, and the RSI, which is at 37. If Q4 results fall short of market expectations, we could see the company’s share price return to the lows for the quarter 156.00, while a good report could test the company’s stock price 174.00 high again.

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