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Microsoft downgrades leadership for the 4th quarter

Satya Nadella, CEO of Microsoft, speaks at a panel session at the World Economic Forum in Davos, Switzerland, May 24, 2022.

Holly Adams Bloomberg | Getty Images

Shares of Microsoft fell more than 3% on Thursday after the company lowered its forecast for the fourth quarter, citing unfavorable exchange rate movements.

In a presentation to investors, Microsoft said it expects between $ 51.94 billion and $ 52.74 billion in revenue for the quarter. Microsoft previously forecast fourth-quarter revenue in the range of $ 52.4 billion to $ 53.2 billion.

Microsoft also slightly lowered its earnings forecast for the quarter, saying it now expects reports of adjusted earnings per share ranging from $ 2.24 to $ 2.32. Earlier, the company forecast adjusted earnings per share of $ 2.28 to $ 2.35.

According to a consensus of analysts polled by Refinitiv, Wall Street expects fourth-quarter revenue of $ 52.87 billion and earnings per share of $ 2.33.

Microsoft chief financial officer Amy Hood suggested in April that exchange rates could affect the recommendations.

“We expect other income and expenses to be negative $ 50 million, reflecting the impact of currency revaluation based on market conditions in April,” Hood said. “Like the rest of our recommendations, further movements of capital and currency in the 4th quarter are not reflected in this amount.

Microsoft downgrades leadership for the 4th quarter

Source link Microsoft downgrades leadership for the 4th quarter

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