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Microsoft and Google to Report; Intel and eBay Drop on Earnings Matches

Dan Berman
Hot Stock Minute
Microsoft and Google to Report; Intel and eBay Drop on Earnings Matches

Microsoft (MSFT) reports after the closing bell. The company is expected to post earnings of 75-cents a share up from 67 a year ago. Consensus is that revenue has also climbed more than $2 billion to $20.73 billion. But the picture isn't as rosy when you look at Microsoft's challenges. It has been experiencing weakness in both the business and Windows divisions. In addition, Microsoft's push further into hardware with the Surface tablet has been lackluster at best. Microsoft is up almost 30% year-to-date and hit a new 52-week high above $36 a share on Tuesday.

Google (GOOG) also reports earnings after the bell. The web giant is expected to post earnings of $10.78 a share up from $10.12 a year ago. The bigger difference is expected to be in revenue which has likely climbed 50% to almost $14.5 billion. Google not only continues to dominate in both search and online display ads. It is also increasingly a hardware company. Think Google Glass. Google shares are up 27% year-to-date. They've climbed 58% over the past year. Some analysts give it a price target above $1,000.

Intel (INTC) is down more than 3% following its earnings release after yesterday's closing bell. The numbers were pretty much in line with expectations: 39-cents a share on $12.8 billion in sales. But last year profits were 54-cents a share. Intel says it's suffering from declining computer sales and weakness in China. Moving forward, the company is now cutting its full-year revenue forecast and is scaling back capital spending. Shares of Intel are down 8% over the last year, though they have climbed 13% since the start of 2013.

eBay (EBAY) has been down more than 6% on its earnings. Here again, numbers were right on target with earnings per share of 63-cents on revenue of $3.88 billion. The problem is the company is warning of quote "headwinds" in the second half of the year, coming from Europe and Korea. eBay has been focusing on mobile shoppers, international expansion and partnerships with local physical stores. Shares of eBay are up 41% over the past year, but have underperformed the market in 2013, up 7%.