Revenues in the three months to the end of June are expected to range from $ 51.94 billion to $ 52.74 billion ($ 1.2 trillion) instead of the original $ 52.4 billion to $ 53.2 billion. Refinitive analysts expect revenue of $ 52.87 billion. Microsoft has worsened the outlook for all three segments – Windows products, cloud services and personal computers. Sales from abroad account for about half of the group’s total sales.
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The company lowered its earnings per share to $ 2.24 to $ 2.32 from $ 2.28 to $ 2.35. Analysts expect net income of $ 17.51 billion, or $ 2.33 per share.
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In April, Microsoft predicted that its sales would grow at a double-digit percentage next year. The main contributors to this are the demand for cloud services and office software related to the reopening of economies and the transition of companies to a hybrid model that allows employees to work alternately from the office and from home.
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Rising interest rates by the US Federal Reserve (Fed) and increased geopolitical tensions have caused the dollar to strengthen by 14 percent over the past year. This has led a number of multinational companies, such as Coca-Cola and Procter & Gamble, to lower expectations for the rest of the year. A stronger dollar reduces the revenues of companies from abroad when converted into dollars.
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“Software companies, including Microsoft, have significant operations outside the United States, and I think Microsoft is careful to avoid (market) expectations and be transparent in the event of a currency impact,” Steve Koenig, CEO of SMBC Nikko Securities, told Reuters.
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The company’s shares fell in the New York market on Thursday. They traded around $ 268, down 1.6 percent from the previous day.
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