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Micron's Stock Tumbles as Its Outlook Disappoints
Micron Technology ( MU ) issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.
The memory chip maker and Nvidia ( NVDA ) partner projected fiscal second-quarter revenue of $7.9 billion, give or take $200 million, below the analyst consensus of $8.93 billion compiled by Visible Alpha. The company's forecast for diluted earnings per share (EPS) of between $1.16 to $1.36 was also below estimates.
“While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year," Micron CEO Sanjay Mehrotra said in a release.
In its fiscal first quarter, which ended Nov. 28, Micron swung to a better-than-expected profit of $1.87 billion, or $1.67 per share, from a loss of $1.23 billion, or $1.12 per share, a year earlier. Revenue rose 84% to a record $8.71 billion, just below analysts' estimates and just above the midpoint of management's earlier guidance.
Shares of Micron fell over 13% in extended trading Wednesday following the release. They were up nearly 22% for 2024 through Wednesday’s close.
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