Micron shares plunge on weak second quarter guidance
Sanjay Mehrotra, CEO of Micron Technology Inc., speaks during an interview with CNBC at the New York Stock Exchange (NYSE) in New York City, USA on April 26, 2024.
Brendan Mcdermid | Reuters
micron Shares plunged 13% in extended trading on Wednesday after the chipmaker gave weak second-quarter guidance despite a profit decline in the most recent period.
Here’s how the company performed compared to analyst expectations surveyed by LSEG:
- Earnings per share: $1.79, adjusted vs. $1.75 expected
- revenue: $8.71 billion versus expected $8.71 billion
For the second quarter, Micron expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. According to LSEG, analysts expected revenue of $8.98 billion and earnings per share of $1.91.
Shares of the computer memory and data storage company are up 22% year to date since the market closed, underperforming the Nasdaq’s 29% rise. In the Results reportMicron highlighted data centers and artificial intelligence projects using Nvidia processors as growth areas.
“While consumer-facing markets are weaker in the near term, we expect a return to growth in the second half of our fiscal year,” CEO Sanjay Mehrotra said in a press release. “We continue to capture market share at the highest margin and strategically important portions of the market and are exceptionally well positioned to leverage AI-driven growth to create significant value for all stakeholders.”
