Microsoft's Stock Dips On Earnings And Lowered Guidance| MENAFN.COM

Tuesday, 31 January 2023 09:22 GMT

Microsoft's Stock Dips On Earnings And Lowered Guidance


(MENAFN- Baystreet.ca) Microsoft's Stock Dips On Earnings And Lowered Guidance









Shares of Microsoft Corp. (MSFT) are down 2% after the U.S. technology giant reported quarterly earnings and lowered its forward guidance.
Microsoft reported earnings per share of $2.32 U.S., which was above the $2.29 U.S. forecast by analysts, according to Refinitiv data.
However, the Seattle-based company's revenue in the quarter totaled $52.75 billion U.S., which was slightly below the $52.94 billion U.S. that was expected on Wall Street.
Microsoft lowered its forward guidance, saying it now expects revenue for the next quarter of $50.5 billion U.S. to $51.5 billion U.S.
The new guidance is below the $52 billion U.S. in revenue that analysts have penciled in for Microsoft's next earnings report.
Microsoft also reported that growth at its Azure cloud computing division slowed to 31% in the most recent quarter, a sharp decrease from previous quarters.
The company also took a $1.2 billion U.S. charge during the quarter related to its elimination of 10,000 employees, and revisions to its hardware products and lease agreements.
In a conference call with analysts and journalists, Microsoft executives said that the company saw a steep decline in business at the end of 2022, with sales of its core Windows and Office products declining sharply.
Microsoft's latest financial results kick-off earnings season for the big American technology firms. The tech-laden Nasdaq index is coming off its worst year since 2008 and its first four-quarter decline since the dot-com bubble burst back in 2000.
Microsoft's stock has fallen 16% in the past 12 months to now trade at $242.04 U.S. per share.









MENAFN25012023000212011056ID1105476490


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.