factset
Microsoft Earnings Growth Seen Slowing as Computer Sales Slip
Microsoft likely recorded slower earnings and sales growth last quarter as a sharp decline in personal computer sales eroded demand for its Windows software, counteracting some of the demand for its cloud and other businesses serving companies. The Redmond, Wash., corporation's revenue growth is expected to slow to about 10% in the three months through September compared with a year earlier, while its net income is expected to edge up 1%, according to analysts surveyed by FactSet. They predicted the company would report sales of $49.66 billion and net income of $17.36 billion for the period. That would mean last quarter had the slowest revenue growth in more than five years and the lowest income growth in more than two years. The company is scheduled to announce results after the market closes on Tuesday. A weekly digest of tech reviews, headlines, columns and your questions answered by WSJ's Personal Tech gurus.
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IBM Pledges to Return to Growth in 2021
In the latest quarter, revenue fell 6.5% to $20.37 billion, missing analysts' projections, according to FactSet. Shares fell 6.8% in after-hours trading. IBM's stock closed at $131.65 on Thursday, down 5.4% over the past year. IBM, which had suspended financial projections last year over uncertainty about the pandemic's business impact, said Thursday that it expects revenue to grow this year and anticipates $11 billion to $12 billion in adjusted free cash flow for the year and $12 billion to $13 billion in 2022. "The actions we are taking to focus on hybrid cloud and [artificial intelligence] will take hold, giving us confidence we can achieve revenue growth in 2021," Mr. Krishna.
Nvidia is near a 'tipping point' in AI dominance, analyst says
Shares of Nvidia Corp. had their best single-day performance since April after an analyst said he saw more than 40% upside for the stock. Evercore's C.J. Muse boosted his price target on the shares to $400 from $300 on Friday, making him the most bullish analyst tracked by FactSet. He thinks the company's deep-learning platform is nearing a major breakthrough and predicts that Nvidia's NVDA, 5.09% stock will continue to post strong gains as the company deepens its artificial-intelligence push. "We view Nvidia as being on the cusp of a tipping point in the company becoming the AI standard platform," Muse wrote. He sees a number of applicable business areas, including gaming, high-performance computing, pro visualization, transportation, health care, and autonomous machinery.
IBM earnings: With old tech leading the way, cloud and AI need to catch up
International Business Machines Corp. rode the success of old technology to big gains at the end of last year, but investors will be looking for success from newer businesses in order to believe in Big Blue's future. IBM IBM, -0.86% is scheduled to report earnings on Tuesday after the close of markets. Key points will be the potential impact of China tariffs and the company's gross margins. Most important might be the company's services revenue, which is far behind systems revenue growth despite comprising newer efforts. Don't miss: IBM broke a long losing streak thanks to some of its oldest technology Compared with the year-ago quarter, analysts expect technology services and cloud-platform revenue to rise 0.8% to $8.28 billion and cognitive-solutions revenue to rise 3.8% to $4.22 billion.
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Apple earnings: iPhone 7 could break streak of shrinking sales
Apple Inc. and its iconic smartphone may return to growth when the tech giant reports holiday-quarter earnings after the market closes Tuesday, which would reverse the first declines since the iPhone was born. Apple's fiscal year starts with the holiday-shopping season, typically the largest quarter of the year for the company. Credit Suisse analyst Kulbinder Garcha said his recent checks with Apple suppliers indicate that overall iPhone shipments "remain in line to ahead of expectations." Analysts remain cautious on fiscal 2017 as a whole, however, with growth expected to be relatively flat through the next few quarters. Longer upgrade cycles, increased competition and slow growth in emerging markets continue to be problems for Apple, weighing on its ability to meaningfully expand. Read also: An original 2007 iPhone will cost you between $1.25 and $30,000 Wall Street has already started to shift its attention to the next iPhone, expected in September.