Micron’s Inventory Tumbles as Its Outlook Disappoints

Micron Know-how (MU) issued a income outlook that got here in under analysts’ expectations, sending shares decrease in prolonged buying and selling Wednesday. 

The reminiscence chip maker and Nvidia (NVDA) associate projected fiscal second-quarter income of $7.9 billion, give or take $200 million, under the analyst consensus of $8.93 billion compiled by Seen Alpha. The corporate’s forecast for diluted earnings per share (EPS) of between $1.16 to $1.36 was additionally under estimates. 

“Whereas consumer-oriented markets are weaker within the close to time period, we anticipate a return to development within the second half of our fiscal 12 months,” Micron CEO Sanjay Mehrotra mentioned in a launch.

In its fiscal first quarter, which ended Nov. 28, Micron swung to a better-than-expected revenue of $1.87 billion, or $1.67 per share, from a lack of $1.23 billion, or $1.12 per share, a 12 months earlier. Income rose 84% to a file $8.71 billion, just under analysts’ estimates and simply above the midpoint of administration’s earlier steerage.

Shares of Micron fell over 13% in prolonged buying and selling Wednesday following the discharge. They have been up practically 22% for 2024 via Wednesday’s shut.