Corporate IT spending has languished in the first half of the year, but with increasing stabilization in the financial markets enterprise spending is expected to rebound in the coming months.
The network equipment vendor has a strong track record of exceeding Wall Street’s consensus estimates and we feel that they should be able to do so again this quarter.
Last month, Best Buy reported better than expected quarterly results and this week Intel did the same. We view those both as positive indicators for Microsoft’s upcoming earnings announcement.
Intel’s shares have appreciated over the last few weeks in anticipation of a possible earnings beat. However, we remain cautious on the company’s performance given the current economic environment.
