Microsoft has Preannounced that it won't be able to meet it's current Quarter Guidance due to COVID-19
On February 17 Apple preannounced it would miss Q2 2020 guidance due to COVID-19 and this afternoon Microsoft has warned that it too will miss guidance for the quarter. At the end of our report we present you with a CNBC video segment discussing Microsoft's announcement along with the general effect COVID-19 is having on businesses.
Microsoft released a statement this afternoon updating their fiscal Q3 FY20 Guidance as follows:
"As Microsoft closely monitors the impact of the COVID-19 health emergency, our top priority remains the health and safety of our employees, customers, partners, and communities. Our global health response team is acting to help protect our employees in accordance with global health authorities’ guidance. Worldwide, Microsoft employees are working to support organizations addressing the challenges on the ground. Microsoft also continues to make donations to relief and containment efforts, including directly providing technology to help hospitals and medical workers.
On Jan. 29, as part of our second quarter of fiscal year 2020 earnings call, we issued quarterly revenue guidance for our More Personal Computing segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China. Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call.
As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged.
As the conditions evolve, Microsoft will act to ensure the health and safety of our employees, customers, and partners during this difficult period. We will also continue to partner with local and global health authorities to provide additional assistance. We deeply appreciate the commitment of the people and organizations that have united to address this health emergency; our thoughts are with all those affected across the world."
This afternoon CNBC's 'Fast Money' segment discussed the Microsoft announcement and COVID-19 in general as it relates to business and Wall Street's reactions.
President Trump held a news conference on the Coronavirus this afternoon. You could watch the official Whitehouse.gov video here. The conference begins at the 22: 10 mark. It may only be up for a day.
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