Reminiscence-chip maker Micron Expertise (MU) late Tuesday beat Wall Road’s targets for its fiscal fourth quarter. But it surely badly missed views with its steering for the present quarter. MU inventory fell in prolonged buying and selling.
The Boise, Idaho-based firm earned an adjusted $2.42 a share on gross sales of $8.27 billion within the quarter ended Sept. 2. Analysts had anticipated Micron earnings of $2.33 a share on gross sales of $8.23 billion, based on FactSet. On a year-over-year foundation, Micron earnings jumped 124% whereas gross sales surged 37%.
For the present quarter, Micron expects to earn an adjusted $2.10 a share on gross sales of $7.65 billion. Wall Road was modeling Micron earnings of $2.53 a share on gross sales of $8.54 billion in its fiscal first quarter, FactSet stated. Within the year-earlier interval, Micron earned 78 cents a share on gross sales of $5.77 billion.
“Micron’s excellent fourth-quarter execution capped a 12 months of a number of key milestones,” Chief Government Sanjay Mehrotra stated in a information launch. “In fiscal 2021, we established DRAM and Nand know-how management, drove file revenues throughout a number of markets, and initiated a quarterly dividend.”
He added, “The demand outlook for 2022 is powerful, and Micron is delivering progressive options to our prospects, fueling our long-term development.”
MU Inventory Sinks
In after-hours buying and selling on the inventory market immediately, MU inventory dropped 2.8%, close to 71.10. In the course of the common session Tuesday, MU inventory slid 2.8% to 73.10.
MU inventory has been underneath stress since early August when market analysis agency TrendForce forecast weakening costs for PC reminiscence chips within the fourth quarter. It cited excessive inventories of dynamic random-access reminiscence, or DRAM, chips within the provide chain.
“It seems to be like Micron expects the supply-demand atmosphere, notably in DRAM, to equalize extra rapidly than the market/analysts had been anticipating,” Third Bridge analyst Nicholas Welsch-Lehmann stated in a word to purchasers. The “query turns into the extent to which it is a speedbump or the beginning of a interval of prolonged weak spot.”
Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper know-how, software program and semiconductor shares.
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