{"id":66000,"date":"2023-01-25T09:02:36","date_gmt":"2023-01-25T14:02:36","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66000"},"modified":"2023-01-25T09:02:53","modified_gmt":"2023-01-25T14:02:53","slug":"coffee-with-greta-microsofts-gloomy-outlook-weighs-on-tech","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/01\/25\/coffee-with-greta-microsofts-gloomy-outlook-weighs-on-tech\/","title":{"rendered":"Coffee With Greta: Microsoft’s Gloomy Outlook Weighs On Tech"},"content":{"rendered":"

DJIA Futures: <\/b>-273 (-0.8%)<\/span><\/p>\n

SPX Futures: <\/b>-42 (-1.0%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-194 (-1.6%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are falling as Microsoft\u2019s gloomy forecast drags down the tech sector.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Microsoft Drops On Weak Forecast<\/span><\/h2>\n

Microsoft <\/b>(MSFT) shares are falling 3% ahead of the open after weak guidance overshadows a fiscal Q2 earnings beat.\u00a0<\/span><\/p>\n

Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • Adjusted EPS: $2.32 vs $2.29 expected<\/span><\/li>\n
  • Revenue: $52.75 billion vs $52.94 billion expected<\/span><\/li>\n<\/ul>\n

    Total revenue rose just 2% year over year which was the slowest rate since 2016.\u00a0<\/span><\/p>\n

    Microsoft\u2019s Intelligent Cloud segment brought in $21.51 billion in revenue, up 18% from a year ago and better than analysts\u2019 expectations of $21.44 billion.\u00a0<\/span><\/p>\n

    But executives told analysts on the conference call that they expect the weakening tech environment to continue.\u00a0<\/span><\/p>\n

    Microsoft said it expects $50.5 billion to $51.5 billion in fiscal Q3 revenue, falling short of estimates for $52.43 billion.\u00a0<\/span><\/p>\n

    Boeing Slips After Surprise Q4 Loss<\/span><\/h2>\n

    Boeing <\/b>(BA) shares are down 2.6% in premarket trade after reporting an unexpected Q4 loss.\u00a0<\/span><\/p>\n

    Here\u2019s how the plane maker\u2019s results compared to analysts\u2019 expectations:\u00a0<\/span><\/p>\n

      \n
    • Adjusted loss per share: $1.26 vs $0.26 EPS expected<\/span><\/li>\n
    • Revenue: $19.98 billion vs $20.38 billion expected<\/span><\/li>\n<\/ul>\n

      The profit loss was caused by supply chain issues which caused higher costs.\u00a0<\/span><\/p>\n

      Boeing\u2019s commercial aircraft unit generated $9.2 billion in Q4 sales, up 94% year over year.\u00a0<\/span><\/p>\n

      The company generated $3.1 billion in free-cash flow last quarter, better than expected.\u00a0<\/span><\/p>\n

      It had $2.3 billion in cash flow for the full-year, the best since 2018.\u00a0<\/span><\/p>\n

      Boeing reiterated its forecast to generate between $3 billion and $5 billion in free-cash flow this year.\u00a0<\/span><\/p>\n

      Kimberly-Clark Falls After Q4 Sales Miss<\/span><\/h2>\n

      Kimberly-Clark <\/b>(KMB) shares are down 4% ahead of the open after reporting mixed Q4 results.\u00a0<\/span><\/p>\n

      Here\u2019s how the consumer goods giant\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

        \n
      • Adjusted EPS: $1.54 vs $1.51 expected<\/span><\/li>\n
      • Revenue: $4.96 billion vs $4.99 billion expected<\/span><\/li>\n<\/ul>\n

        The drop in revenue came as sales volume declined 7% but pricing rose 10%.\u00a0<\/span><\/p>\n

        Kimberly-Clark forecast sales will be flat to up 2% in 2023 vs analysts\u2019 expectations for 1% growth.<\/span><\/p>\n

        AT&T Jumps On Earnings Beat<\/span><\/h2>\n

        AT&T <\/b>(T) shares are up 2.4% in premarket trade after beating Q4 profit expectations.\u00a0<\/span><\/p>\n

        Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

          \n
        • Adjusted EPS: $0.61 vs $0.57 expected<\/span><\/li>\n
        • Revenue: $31.3 billion vs $31.4 billion expected<\/span><\/li>\n<\/ul>\n

          AT&T added 656,000 monthly cell phone subscribers in the quarter vs 570,000 expected, bringing the 2022 total to nearly 2.9 million.\u00a0<\/span><\/p>\n

          The company forecast adjusted EPS of $2.35 to $2.45 for the full-year 2023 vs $2.53 expected.<\/span><\/p>\n

          AT&T is targeting $16 billion or more in free-cash flow this year vs $16.2 billion estimates<\/span><\/p>\n

          Mortgage Demand Rises As Rates Hit 4-Month Low<\/span><\/h2>\n

          Mortgage demand jumped last week as rates fell for the third week in a row.\u00a0<\/span><\/p>\n

          The Mortgage Bankers Association reported total application volume rose 7% last week.\u00a0<\/span><\/p>\n

          Purchase applications rose 3% weekly and were down 39% year over year.\u00a0<\/span><\/p>\n

          Refinance applications jumped 15% weekly and were down 77% annually.\u00a0<\/span><\/p>\n

          The jump came as the average 30-year contract rate fell to 6.2% from 6.23%, the lowest since September.<\/span><\/p>\n

          Key Earnings After The Close<\/span><\/h2>\n

          Here\u2019s a look at the companies set to report earnings after the close today:<\/span><\/b><\/p>\n

            \n
          • Tesla <\/b>(TSLA)<\/span><\/li>\n
          • IBM <\/b>(IBM)<\/span><\/li>\n
          • ServiceNow <\/b>(NOW)<\/span><\/li>\n
          • Levi Strauss <\/b>(LEVI)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            DJIA Futures: -273 (-0.8%) SPX Futures: -42 (-1.0%) NASDAQ Futures: -194 (-1.6%) Good morning friends! Futures are falling as Microsoft\u2019s gloomy forecast drags down the tech sector.\u00a0 Let\u2019s get right to it! Microsoft Drops On Weak Forecast Microsoft (MSFT) shares are falling 3% ahead of the open after weak guidance overshadows a fiscal Q2 earnings beat.\u00a0 Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.32 vs $2.29 expected Revenue: $52.75 billion vs $52.94 billion expected Total revenue rose just 2% year over year which was the slowest rate since 2016.\u00a0 Microsoft\u2019s Intelligent Cloud segment brought in $21.51 billion in revenue, up 18% from a year ago and better than analysts\u2019 expectations of $21.44 billion.\u00a0 But executives told analysts on the conference call that they expect the weakening tech environment to continue.\u00a0 Microsoft said it expects $50.5 billion to $51.5 billion in fiscal Q3 revenue, falling short of estimates for $52.43 billion.\u00a0 Boeing Slips After Surprise Q4 Loss Boeing (BA) shares are down 2.6% in premarket trade after reporting an unexpected Q4 loss.\u00a0 Here\u2019s how the plane maker\u2019s results compared to analysts\u2019 expectations:\u00a0 Adjusted loss per share: $1.26 vs $0.26 EPS expected Revenue: $19.98 billion vs $20.38 billion expected The profit loss was caused by supply chain issues which caused higher costs.\u00a0 Boeing\u2019s commercial aircraft unit generated $9.2 billion in Q4 sales, up 94% year over year.\u00a0 The company generated $3.1 billion in free-cash flow last quarter, better than expected.\u00a0 It had $2.3 billion in cash flow for the full-year, the best since 2018.\u00a0 Boeing reiterated its forecast to generate between $3 billion and $5 billion in free-cash flow this year.\u00a0 Kimberly-Clark Falls After Q4 Sales Miss Kimberly-Clark (KMB) shares are down 4% ahead of the open after reporting mixed Q4 results.\u00a0 Here\u2019s how the consumer goods giant\u2019s results compared to analysts\u2019 expectations: Adjusted EPS: $1.54 vs $1.51 expected Revenue: $4.96 billion vs $4.99 billion expected The drop in revenue came as sales volume declined 7% but pricing rose 10%.\u00a0 Kimberly-Clark forecast sales will be flat to up 2% in 2023 vs analysts\u2019 expectations for 1% growth. AT&T Jumps On Earnings Beat AT&T (T) shares are up 2.4% in premarket trade after beating Q4 profit expectations.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.61 vs $0.57 expected Revenue: $31.3 billion vs $31.4 billion expected AT&T added 656,000 monthly cell phone subscribers in the quarter vs 570,000 expected, bringing the 2022 total to nearly 2.9 million.\u00a0 The company forecast adjusted EPS of $2.35 to $2.45 for the full-year 2023 vs $2.53 expected. AT&T is targeting $16 billion or more in free-cash flow this year vs $16.2 billion estimates Mortgage Demand Rises As Rates Hit 4-Month Low Mortgage demand jumped last week as rates fell for the third week in a row.\u00a0 The Mortgage Bankers Association reported total application volume rose 7% last week.\u00a0 Purchase applications rose 3% weekly and were down 39% year over year.\u00a0 Refinance applications jumped 15% weekly and were down 77% annually.\u00a0 The jump came as the average 30-year contract rate fell to 6.2% from 6.23%, the lowest since September. Key Earnings After The Close Here\u2019s a look at the companies set to report earnings after the close today: Tesla (TSLA) IBM (IBM) ServiceNow (NOW) Levi Strauss (LEVI)<\/p>\n","protected":false},"author":41,"featured_media":66008,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=66000"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66000\/revisions"}],"predecessor-version":[{"id":66011,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66000\/revisions\/66011"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66008"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}