LONDON — Microsoft Corp. shares to plunge 7.3% after the tech giant said it expects to lose $4 billion to $5 billion this year and is on track to miss earnings estimates for the first time in two years.
The company on Thursday posted its second-quarter profit that beat Wall Street estimates for its full year.
Microsoft posted earnings of $1.43 a share, up from $1 in the same quarter a year ago.
The company’s shares fell by about 15% in the after-hour trading session, the largest decline in two months.
The stock is trading below its IPO price of $16.
Microsoft shares fell in the first two hours of trading after analysts had projected the company would report a profit of $4.7 billion.
The shares fell 6.6% in midday trading.
Microsoft is facing a tough time competing with Apple Inc. and Google Inc. in the mobile market and the company’s Windows 8 operating system has struggled to gain traction.
Microsoft is seeking to get into the tablet business with a new Surface tablet and is expanding its Surface Book line of laptops.