Microsoft shares slid more than 3% on Thursday after the company lowered its fiscal fourth-quarter guidance, citing unfavorable foreign exchange rate movement.

In an investor slide deck, Microsoft said it expects to report between $51.94 billion and $52.74 billion in revenue for the quarter. Microsoft previously forecast fourth-quarter revenue in the range of $52.4 billion to $53.2 billion.

Microsoft also slightly cut its earnings forecast for the quarter, saying it now expects to report adjusted earnings per share in the range of $2.24 to $2.32. Previously, the company projected adjusted earnings per share between $2.28 and $2.35.

Wall Street is expecting Q4 revenue of $52.87 billion and an EPS of $2.33, according to the consensus among analysts polled by Refinitiv.

Microsoft finance chief Amy Hood had suggested in April that exchange rates could impact guidance.

“We expect other income and expense to be negative $50 million reflecting FX remeasurement impact based on market conditions in April,” Hood said. “Similar to the rest of our guidance, further equity and FX movements thru Q4 are not reflected in this number.

Source: cnbc.com