The report, for the first quarter of the company’s fiscal 2016, will give investors the first glimpse of the company’s new financial-reporting structure.
Microsoft is expected to report another quarter of declining sales on Thursday, as a sluggish PC market limited demand for the software company’s Windows and Office mainstays.
The report for the company’s first quarter of fiscal 2016 will also give investors their first glimpse of Microsoft’s new financial-reporting structure. The Redmond company last month tweaked the way it reports profit and loss, the second such change in three years.
Microsoft’s new groupings are centered on applications, cloud-computing tools and other server infrastructure, and Windows and devices.
Analysts are expecting Microsoft to offer an update on the sales progress of its Windows 10 operating system, which was released during the quarter. Because some computer manufacturers added inventory ahead of previous Windows releases, the Windows business could have seen a temporary benefit during the quarter, analysts with Jefferies said in a research note.
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Wall Street analysts also are expecting growth in sales of cloud products, including rented processing power and storage in Microsoft’s data centers. Also expected is an update on the adoption of Microsoft’s Web-based Office 365 productivity suite.
Currency movements are expected to be a head wind to Microsoft’s profitability, as a historically strong U.S. dollar during the quarter limits the profit the company makes on sales in other currencies when translated back to Microsoft’s home currency. Microsoft indicated it expects that foreign exchange reduced its revenue by about 5 percent.
Analysts foresee Microsoft posting a profit of 58 cents a share during the three months through Sept. 30, up from 54 cents a share during the same period last year. Sales during the quarter are forecast at $20.9 billion, down from $23.2 billion in 2014.
Microsoft shares declined 57 cents, or 1.2 percent, to close Wednesday at $47.20.