The leading tech giant, Microsoft (NASDAQ:MSFT) is gearing up for the report this coming week. The stock market is looking forward to seeing a year-over-year rise in earnings based on higher revenues. The report will take into account the corporation’s performance in the quarter that ended March 2019. Investors will get the opportunity to look into the firm’s overall earnings; a situation that is likely to affect the short-term stock price.
The market expects the earnings report to be released on April 24. Moreover, the report is likely to attract a lot of interest and in turn lead to the stock trending higher. However, it is essential that the key numbers meet the expectations of the investors. On the contrary, if the company fails to deliver we can expect a trend reversal.
On the other hand, the ability to sustain the expected price change following the release of the report, depends on the Microsoft’s management’s take on the prevailing business conditions and their effects on the earnings. On a lighter note, it is worth it to handicap the probability of a good EPS surprise.
Microsoft (MSFT) could post a quarterly earnings per share of $1.00 in the April 24 report. A figure that will represent a year-over-year change of +5.3%. The company’s revenue estimate is around $29.83 billion which is up 11.2% compared to the previous quarter revenue.
In other news, Microsoft (MSFT) is ready to bring to its Surface family, a new set of Earbuds according to a report by Thurrutt. Experts see this new development as a way to compete with Apple (AAPL) which has for a long time dominated the wireless arena with its sort after headphones as well as earphones with its AirPod product.
The Surface Earbuds or otherwise known as ‘Surface Buds” are expected in the market later in 2019. The firm is looking forward to leveraging Christmas and the related holiday shopping season to gain a considerable market share. The booming headphones and earphones global market could definitely use another player. Besides, a report released by Research and Markets indicates that the global market is likely to grow to $36 billion by 2024 at a CAGR of 13% from 2018 to 2024.
The massive growth in the technology sector continues to attack tech giants. For example, this latest development by Microsoft comes after a report surface saying that Amazon (AMZN) is also launching its set of headphones in the second half of 2019.
Is Microsoft ready to take on Apple?
It is important to note that this is not the first time Microsoft is trying to shake Apple’s dominance in the hardware sector. For instance, the companies Surface Studio Desktop, Surface Laptop, Surface Pro and Surface table have been competing for the market with Apple’s MacBook Pro, MacBook Air as well as Apple’s budget iPads.
In addition to that, Microsoft will launch its Surface Earbuds during the holiday shopping season later in the year. A trick that worked for its Surface Headphones that were released in the holiday season of 2018. Surface Earbuds will have virtual assistance that is expected to aid in simplifying everyday tasks.
Microsoft has been working to ensure that its devices are AI and machine learning enabled besides, Thurrott report says that the firm wants to “improve interactions between a phone and the earbuds to make reading content easier on the phone.”