{"id":163138,"date":"2021-01-26T03:03:00","date_gmt":"2021-01-26T00:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/"},"modified":"2021-01-26T03:03:00","modified_gmt":"2021-01-26T00:03:00","slug":"earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/","title":{"rendered":"#Earnings Outlook: Microsoft earnings: The SolarWinds hack may be a good thing for Azure"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af7da33e48fa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af7da33e48fa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/#Analyst_expects_that_corporate_customers_will_move_to_the_cloud_to_avoid_future_intrusions_which_could_boost_Microsofts_core_cloud_product\" >Analyst expects that corporate customers will move to the cloud to avoid future intrusions, which could boost Microsoft\u2019s core cloud product<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/#What_to_expect\" >What to expect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/#What_analysts_are_saying\" >What analysts are saying<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-microsoft-earnings-the-solarwinds-hack-may-be-a-good-thing-for-azure\/#Wallace_Witkowski\" >Wallace Witkowski<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Earnings Outlook: Microsoft earnings: The SolarWinds hack may be a good thing for Azure<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Analyst_expects_that_corporate_customers_will_move_to_the_cloud_to_avoid_future_intrusions_which_could_boost_Microsofts_core_cloud_product\"><\/span>\n  Analyst expects that corporate customers will move to the cloud to avoid future intrusions, which could boost Microsoft\u2019s core cloud product<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000134716\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Microsoft Corp. got caught up into  a massive cybersecurity attack late last year, but the unprecedented intrusion may actually end up being a positive  for the company\u2019s bottom line.<\/p>\n<p> UBS analyst Karl Keirstead, who has a buy rating and a $243 price target, said while Microsoft<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"positive\">+1.58%<\/bg-quote><br \/>\n       products were leveraged by hackers in the attack on SolarWinds Corp.\u2019s<br \/>\n        SWI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208088323\/composite\" class=\"positive\">+0.63%<\/bg-quote><br \/>\n       Orion IT management software because they are so commonplace, \u201cthe broader cyber-security community are not pointing fingers at Microsoft.\u201d<\/p>\n<div class=\"paywall\">\n       Keirstead noted that the attack actually drove more customers into public cloud infrastructures like Azure, Amazon.com Inc.\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+0.05%<\/bg-quote><br \/>\n       AWS and Alphabet Inc.\u2019s<br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"negative\">-0.09%<\/bg-quote><\/p>\n<p>        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"positive\">+0.09%<\/bg-quote><br \/>\n       Google Cloud, \u201cgiven a view that cloud data centers are more secure and that constantly patching\/updating on-premise software like Orion presents a security risk that can be transferred to Microsoft, Amazon or Google.\u201d<\/p>\n<p>\u201cBottom line, we believe this cybersecurity attack could be a modest net positive for Microsoft,\u201d Keirstead said. <\/p>\n<p>Analysts expect Microsoft\u2019s Intelligent Cloud segment, which includes the company\u2019s Azure public cloud platform, to bring in $13.77 billion in revenue, up 16% from the year-ago period when Microsoft reports fiscal second-quarter earnings after the bell on Thursday. <\/p>\n<p>Microsoft only breaks out percentage gains for Azure from the year-ago period without specifying a dollar amount. Azure gains were 59% in the first quarter of fiscal 2021, 47% for the fourth quarter of fiscal 2020, 59% in the third quarter, and 62% in last year\u2019s second quarter. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_to_expect\"><\/span>What to expect<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><strong>Earnings: <\/strong>Of the 28 analysts surveyed by FactSet, Microsoft on average is expected to post earnings of $1.64 a share, up from the $1.61 a share expected at the beginning of the quarter and the $1.51 a share reported in the year-ago second quarter. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, calls for earnings of $1.74 a share.<\/p>\n<p><strong>Revenue: <\/strong>Wall Street expects revenue of $40.23 billion from Microsoft, according to 25 analysts polled by FactSet. That\u2019s down from the $40.48 billion forecast at the beginning of the quarter, but up from the $36.91 billion reported in the year-ago quarter. Estimize expects revenue of $40.78 billion.<\/p>\n<p><strong>Stock movement:<\/strong> Over the December-ending quarter, Microsoft shares rose 5.8%, compared with a 10.2% rise on the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.12%<\/bg-quote><span>,<\/span><br \/>\n       which includes Microsoft as a component. Similarly, the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.36%<\/bg-quote><br \/>\n       rose 11.7%, and the tech-heavy Nasdaq Composite Index<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"positive\">+0.69%<\/bg-quote><br \/>\n       rose 15.4%.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_analysts_are_saying\"><\/span>What analysts are saying<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Morgan Stanley analyst Keith Weiss, who has an overweight rating and a $260 price target, said that while investors may focus on Microsoft\u2019s headwinds, he sees an opportunity given the stock\u2019s lag in the software sector. While Microsoft\u2019s stock has risen 35% in the past 12 months, the iShares Expanded Tech-Software Sector ETF<br \/>\n        IGV,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201870252\/composite\" class=\"negative\">-0.31%<\/bg-quote><br \/>\n       has grown 43%<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cAfter clearing tough Q2 product cycle comps and lingering COVID impacts, strong secular positioning and an attractive multiple make MSFT a top stock of the recovery,\u201d Weiss said. The Morgan Stanley analyst expects 41% growth in Azure in the second quarter, and 41.6% growth in fiscal 2021.<\/p>\n<p>Citi Research analyst Walter Pritchard, who has a buy rating and a $272 price target, sees margin headwinds in Microsoft\u2019s gaming business, and expects continued PC strength will make up for weakness in server and Office licensing.<\/p>\n<p>\u201cWe see positive set-up around key top-line metrics for Microsoft, with likely upside to Azure growth metric and forward Azure numbers moving higher here after continued strong contract signing and consumption indications,\u201d Pritchard said.<\/p>\n<p>Mizuho analyst Gregg Moskowitz, who has a buy rating and a $255 price target, sees 48% Azure growth year-over-year. <\/p>\n<p>\u201cWe contend that Azure is becoming more powerful, and that MSFT has assembled an impressive collection of cloud assets that will continue to drive strong overall growth for a company its size,\u201d Moskowitz said.  <\/p>\n<p>Goldman Sachs, which initiated coverage with a buy rating and $285 target price, expects Azure to expand margins in Microsoft\u2019s commercial cloud business as it grows in scale.<\/p>\n<p>\u201cWhile we believe that Azure\u2019s existing growth rate of high 40\u2019s is very impressive, particularly given the scale of the business, we believe that CY2H21 has the potential to see some acceleration,\u201d the firm said. \u201cMore broadly, as workforces are likely to remain distributed to some extent for the foreseeable future, we see the potential for accelerated public cloud adoption.\u201d<\/p>\n<p>Of the 34 analysts who cover Microsoft, 31 have buy ratings and three have hold ratings, along with an average target price of $248.99, according to FactSet data.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Wallace Witkowski\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Wallace_Witkowski\"><\/span>Wallace Witkowski<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D20E3CC2BC17%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Earnings Outlook: Microsoft earnings: The SolarWinds hack may be a good thing for Azure&#8221; Analyst expects that corporate customers will move to the cloud to avoid future intrusions, which could boost Microsoft\u2019s core cloud product Microsoft Corp. got caught up into a massive cybersecurity attack late last year, but the unprecedented intrusion may actually end&#8230;<\/p>\n","protected":false},"author":1,"featured_media":163139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-163138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/163138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=163138"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/163138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/163139"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=163138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=163138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=163138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}