Microsoft Corp. on Thursday updated its Q4 and FY23 guidance due to recent unfavorable currency headwinds.
Microsoft cited an incremental $460 million headwind from FX to its total revenue guidance issued in late April, representing slightly less than a 100bps delta on total revenue.
Microsoft now expects revenue of $51.94 billion–$52.74 billion in Q4 (down ~1 percent from $52.4 billion–$53.2 billion), and EPS of $2.24–$2.32 (down ~$0.03 from $2.28-$2.35).
Microsoft generates ~50 percent of its revenues from international markets.
Mizuho analyst Gregg Moskowitz reiterated a Buy on Microsoft with a price target of $350.
Moskowitz believed that MSFT’s fundamentals remain intact and remained confident of its growth opportunities over the medium-term and beyond with higher success in the cloud….