NEW YORK (TheStreet) -- Microsoft (MSFT - Get Report) stock is plunging by 7.18% to $51.78 on heavy trading volume on Friday afternoon, after the technology company delivered fiscal 2016 third quarter financial results and fiscal fourth-quarter revenue guidance that fell short of estimates.
After yesterday's market close, the Redmond, WA-based company posted an adjusted profit of 62 cents per share on revenue of $22.08 billion for the fiscal third quarter, missing estimates that called for earnings of 64 cents per share on revenue of $22.09 billion.
"The revenue mix was somewhat shaky as the strength was due to Windows OEM revenue that outperformed the broader PC market (which is not necessarily sustainable), while on premise software (server products, Office Commercial) were weak, mostly due to softer spending from more challenged macro," Barclays analysts explained in a note this morning.
For the fiscal 2016 fourth quarter, Microsoft expects to report revenue between $21.7 billion and $22.4 billion, but analysts were forecasting $23.04 billion in revenue.
The weak outlook was driven by "weakness in PCs, phones and transactional server sales," Pacific Crest analysts said in a separate note.
So far today, 107.4 million shares of Microsoft have exchanged hands today, more than three times its average daily volume of 33.47 million shares.
Separately, Microsoft has a "buy" rating and a letter grade of B+ at TheStreet Ratings because of the company's solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins.
You can view the full analysis from the report here: MSFT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.