Quarterly earnings reports from Intel (INTC), Yahoo (YHOO) and Cree (CREE) are mixed with Microsoft (MSFT) slated to report on Thursday after the closing bell. Despite beating estimates, after-market traders focused on the light outlook as an excuse to sell the stock. This demonstrates the market’s inefficiency. The company earned $0.80 per share, as revenue jumped 9.1% year-over-year.
Intel’s light margin guidance should not concern shareholders. Data center, desktop chip, and IoT (Internet of Things) will ensure the chip giant’s growth for quarters to come.
Yahoo (YHOO) reported revenue growth of 6.5% Y/Y. The company’s strategic focus on “Maven” – mobile, video, native, and social – helped the company grow visitor traffic ($1.25B). Mobile revenue grew a respectable 46.1%. Yahoo’s sale to Verizon (VZ) will dictate the share price in the near-term.
LED supplier Cree (CREE) reported horrendous results. The company earned $0.09 per share, missing estimates by $0.02 per share. Revenue fell 15.7% to $321 million. Cree is facing heavy competition in its consumer products division. The product prices are too high and the brand is not recognized by consumers. Expect Cree to fall to the low $20’s.
Microsoft (MSFT) is slated to report quarterly earnings on Thursday, after the market closes. As per Wall Street analysts, Microsoft is expected to report revenue of $21.703 billion for the quarter. This would reflect a rise of about 6.5% in comparison to the same quarter last year. Moreover, analyst estimates suggest Microsoft’s Gross Margin to surge 65%.
