Microsoft lowers fourth-quarter guidance, citing unfavorable foreign exchange rates

Satya Nadella, chief executive officer of Microsoft Corp., appears at a panel session at the World Economic Forum in Davos, Switzerland, on May 24, 2022.

The company lowered its guidance due to unfavorable foreign exchange rate movement.

Microsoft expects to report between 51.94 billion and 52.74 billion in revenue for the quarter. Microsoft predicted fourth-quarter revenue in the range of $52.4 billion to $53.2 billion.

Microsoft now expects to report adjusted earnings per share in the range of $2.24 to $2.32 instead of the previous estimate of $2.32. The company expected adjusted earnings per share to be between $2.28 and $2.35.

According to the consensus of analysts, Wall Street expects Q4 revenue of $52.87 billion and an earnings per share of $2.33

Amy Hood said in April that exchange rates could affect guidance.

Hood said that they expected other income and expense to be negative in April. Further equity and foreign exchange movements are not reflected in this number.