Microsoft Corp on Thursday lowered its forecast for profit and revenue in the fourth quarter, citing a strengthening dollar.
The company expects revenue for the quarter to be between $51.94 billion and $52.74 billion, lower than its prior range of $52.40 billion to $53.20 billion.
This reduced the profit view to between $2.24 and $2.32 per share, up from an earlier expectation of $2.28 to $2.35 per share.
Analysts forecast net income of $17.51 billion, or $2.33 per share, on revenue of $52.87 billion, according to Refinitiv data.
Microsoft in April had forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services.
But a rising US dollar has put pressure on the profits of US multinationals that convert foreign currency into dollars, adding to corporate concerns over rising inflation and prompting some to more actively seek ways to hedge their earnings. Huh.
Microsoft shares were down 2% in premarket trading against the tech-heavy Nasdaq index.
This story has been published without modification in text from a wire agency feed.