Microsoft Cuts Earnings, Revenue Guidance Citing Foreign Exchange
Microsoft shares recovered from early losses to finish up $2.16, or 0.8%, to $274.58, rising with the broader market. The software company cut sales and earnings guidance for the current quarter, citing the impact of foreign-exchange rates as the stronger U.S. dollar takes a toll. The software giant said in a securities filing Thursday that it now expects fiscal fourth-quarter sales of between $51.94 billion and $52.74 billion, down from its prior guidance of $52.4 billion to $53.2 billion. The quarter ends June 30. Earnings are expected to be between $2.24 a share and $2.32 a share, down from prior guidance of $2.28 a share to $2.35 a share. Economic weakness in other parts of the world has helped propel the U.S. dollar to multi-decade highs against its trading partners, which comes as U.S. inflation is at or near its highest level in nearly 40 years.