Technology giant Microsoft today (Thursday) cuts its revenue and profit forecast for the current fiscal quarter due The strong dollar. The company’s stock is down trading on Wall Street by more than 2% after the announcement.
In an official report from the company, Microsoft, director of Satya Nadella, stated that it expects revenue of $ 52.74-51.94 billion for the fourth fiscal quarter, which ends in June. The company’s previous forecast was for revenues in the range of $ 52.4 billion to $ 53.2 billion.
As for the earnings line, Microsoft expects net income of $ 2.32-2.24 per share, compared to the previous forecast of $ 2.35-2.28 per share.
Microsoft’s CFO Amy Hood said as early as April that the currency’s exchange rates could have an impact on the company’s forecasts. In the first quarter reports Which released in April, the technology giant posted revenue of $ 49.9 billion while the expectation was $ 49 billion.
According to the Wall Street Journal, economic weakness in some parts of the world helped the dollar strengthen to a record high since 2002 against major currencies such as the euro, the pound and the yen, and the index following the strength of the US currency rose more than 6% this year. The strong dollar means that the profits of American companies engaged in exports are likely to be hurt as they will receive less dollars for their goods. At the same time, US inflation is at a peak of almost 40 years, When the director stood at 8.3%.
“As part of Microsoft’s preparations for the new fiscal year, we are making sure that the right resources are allocated to the right opportunities,” the company said yesterday.
