Windows 10 set to change Microsoft’s standing

On Monday 26 January, before the US markets open, Microsoft is set to announce its second-quarter figures.

Microsoft sign
Source: Bloomberg

Microsoft has just announced the launch of Windows 10, its new operating system that will be available on PCs, tablets and smartphones. It is early days but the reception from the tech-savvy press has been very encouraging, and unlike previous updated versions optimism over its popularity is high.

The company’s Q2 adjusted earnings per share is expected to improve, rising from $0.65 up to $0.749. Sales are also called up from $23.201 billion to $26.328 billion. These should help see its pretax profits increase, from $5.896 billion up to $7.607 billion.

As you would expect there are a large number of analysts covering the company and the general consensus is positive, with 24 rating it as a buy, 19 as a hold and only four with a sell recommendation. The average price target for Microsoft over the next twelve months is $50.35, still offering a 10% upside from the current share price.

The last 18 months have seen a solid bullish trend in place and at the moment Microsoft is at the lower end of the range. The new software package, along with other new product offerings, should see a return to the higher end of this range. Only a break below the 200-day moving average would knock this more optimistic stance.

IG offers extended trading hours on over 30 key US stocks, including Microsoft, until 1am Mon-Thurs and 10pm Fri (London time).

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.