Microsoft Corp. pared its outlook for fiscal fourth-quarter earnings and revenue, citing the impact from a surging dollar, sending the shares tumbling.
The software giant said it now expects earnings per share of $2.24 to $2.32, down from earlier estimates for $2.28 to $2.35 a share. The company sees a $460 million impact on fourth-quarter revenue from currency fluctuations, knocking revenue to $51.94 billion to $52.74 billion. The shares declined about 2.3% Thursday morning in New York.
Microsoft issued the new guidance in a securities filing, “to help investors understand the impact of unfavorable foreign exchange rate movement in the fourth quarter of fiscal 2022 since the forward-looking guidance provided on April 26.” The Redmond, Washington-based company got about half of the $168 billion in revenue generated in fiscal 2021 from abroad.
Microsoft’s revised outlook “will be a recurring theme across many large software companies, as most generate over one-third of their sales outside the US,” said Anurag Rana, an analyst at Bloomberg Intelligence. In its most recent earnings report, issued in April, Microsoft reported quarterly sales and earnings that topped analysts’ projections, fueled by robust growth in cloud-services demand.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
MONEY LIVE | Sale of Libstar business falls through | Fin24MONEY LIVE | Sale of Libstar business falls through.
Read more »
Business Maverick: Biden says US will provide Ukraine advanced rocket systemsPresident Joe Biden said he’ll give Ukraine advanced rocket systems and other US weaponry to better hit targets in its war with Russia, ramping up military support as the conflict drags into its fourth month.
Read more »
Business Maverick: Boeing reaches out to Singapore Air to discuss 777X delaysBoeing Co has reached out to Singapore Airlines Ltd. to discuss the US planemaker’s failure to deliver long-delayed 777X aircraft on time, according to the CEO of the city-state’s flag carrier.
Read more »
Business Maverick: US Manufacturing Growth Unexpectedly Firms on Stronger OrdersUS manufacturing activity unexpectedly advanced in May as new orders and output growth quickened, suggesting underlying demand remains solid.
Read more »
Business Maverick: African Lender Wants to Leverage Rich Nations’ IMF Reserve FundsThe African Development Bank is lobbying rich nations to use their rights to International Monetary Fund reserve assets to help it raise funding to support poorer countries, the first such initiative undertaken by a multilateral lender.
Read more »
Business Maverick: Euro Zone Set to Get 20th Member as Croatia Given Crucial NodThe euro zone is moving closer to adding its 20th member after Croatia was ruled to be in good enough shape to join the club next year.
Read more »