MU stock: Micron technology outperforms fourth-quarter financial targets
memory chip maker micron technology (mo) late Tuesday outperformed Wall Street’s targets for its fourth fiscal quarter. But it missed out heavily on views with its guidance for the current quarter. MU stock is down in extended trading.
The Boise, Idaho-based company earned $2.42 per share on sales of $8.27 billion in the quarter ended September 2. Analysts had expected Micron to earn $2.33 per share on sales of $8.23 billion, according to FactSet. On an annual basis, Micron’s profits jumped 124% while sales were up 37%.
For the current quarter, Micron expects to earn an adjusted $2.10 per share on sales of $7.65 billion. Wall Street was modeling Micron’s $2.53 earnings per share on $8.54 billion in sales in the first quarter of the fiscal year, FactSet said. In the same period last year, Micron earned 78 cents a share on $5.77 billion in sales.
CEO Sanjay Mehrotra said at new version. “In fiscal year 2021, we established our DRAM and Nand technology leadership, generated record revenue across multiple markets, and began paying quarterly dividends.”
“The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth,” he added.
Stock Laundries MU
In after-hours trading on stock market todayMU stock is down 3.3%, near 70.80. During the regular session on Tuesday, MU stock fell 2.8% to 73.10.
MU’s stock has been under pressure since early August when market research firm TrendForce forecast a drop in PC memory chip prices in the fourth quarter. She cited high stocks of DRAM or DRAM chips in the supply chain.
“It appears that Micron expects the supply and demand environment to level out, particularly in DRAM, faster than the market/analysts had been expecting,” Third Bridge analyst Nicholas Welch-Lehmann said in a note to clients. The question becomes to what extent this is a speed bump or the start of an extended period of weakness.
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