Microsoft Warns of Drag on Profit, Sales With Dollar Surge
- The US dollar has soared as Federal Reserve tightens rates
- Many software companies get more than 1/3 of sales from abroad
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Microsoft Corp. pared its forecasts for the current quarter, signaling that the surging US dollar will eat into revenue more than it previously expected and underscoring the threat of inflation and tighter economic policy for an industry that’s already been pummeled by a market rout.
Shares of the company were down about 1.8% Thursday mid-morning after Microsoft said it expects earnings per share of at least $2.24, compared with an earlier forecast of at least $2.28. The company sees a $460 million impact on fourth-quarter revenue from currency fluctuations, knocking revenue to as low as $51.94 billion.