Analysts Prep for Rough Q1 and Wild Q2 Reports from Microsoft (MSFT)

Ahead of the Microsoft’s (NASDAQ: MSFT) FQ1 quarterly earnings report this week, MKM Partners maintained a Neutral rating on the stock and cut its price target to $32.00 (from $35.00). The cut reflects analysts lower growth expectations for Windows and Office, both of which are being impacted by slowing PC growth.

"We believe investors are braced for a difficult quarter in front of Windows 8 launch on October 26 given underlying PC weakness," said analyst Israel Hernandez.

Going forward, Hernandez thinks, considering the the number of moving parts and assumptions, he expects 2Q and FY13 estimates to vary widely across the Street.

"Based on our analysis, we believe there is room for Q2 estimates to move higher relative to current consensus given the release of Halo during the quarter and some modest contribution from Surface, with margins being a major wildcard," said Hernandez.

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $29.51 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• First Cash Financial (FCFS) PT Lowered to $140 at TD Cowen
• Microsoft fiscal Q3 results top estimates as AI revolution spurs cloud growth
• Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises