Microsoft revenue hit by slow PC sales, strong dollar
(Reuters) – Microsoft reported lower-than-expected quarterly revenue on Tuesday on slowing PC computer sales, a strong U.S. dollar and lower advertising spending.
However, these results are not considered catastrophic, during a period when investors fear deep lows due to soaring inflation and reduced spending, both by consumers and businesses. .
The group’s stock was stable in post-closing trading on Wall Street, where it has lost nearly 25% of its value since the start of the year.
Over the April-June period, the dematerialized computing platform (“cloud”) Azure recorded a growth of 40%. Analysts were anticipating a median rise of 43.1%, according to Visible Alpha.
The cloud division as a whole posted quarterly revenue of $20.9 billion, up 20%, beating consensus of $19.1 billion, according to Refinitiv data.
Microsoft has been affected by the strength of the US dollar, while about half of its turnover is made outside the United States. This forced the company to revise downwards its earnings and revenue guidance for the quarter last month.
Exchange rates had an impact of almost $600 million on the group’s turnover. The slowdown in ad spending weighed on LinkedIn and other businesses by more than $100 million.
Microsoft posted overall quarterly revenue of $51.87 billion, up from $46.15 billion a year earlier, while consensus was $52.44 billion, according to IBES data from Refinitiv.
The group’s net profit was $16.74 billion, or $2.23 per share, from $2.17 per share a year earlier.
(Report Akash Sriram and Jane Lanhee Lee; French version Jean Terzian)
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