Micron stock falls as forecasts disappoint and profits continue to dive

Shares of Micron Technology Inc. fell sharply on Thursday after the chip maker announced another major drop in earnings and predicted a disappointing holiday season.

Micron

MU, -1.76%

Shares fell 5.2% after the release of the report. Micron said it expects an adjusted profit of 39 cents to 53 cents a share on revenues of $ 4.8 billion to $ 5.2 billion for its first quarter. Analysts surveyed by FactSet were expecting earnings per share of 53 cents on a turnover of 4.8 billion dollars.

The company announced fourth-quarter net income tax of $ 561 million, or 49 cents a share, compared with $ 4.33 billion, or $ 3.56 a share, for the same period of the year. previous. Adjusted earnings were 56 cents per share.

Revenues dropped to $ 4.87 billion from $ 8.44 billion in the same quarter of the previous year. Analysts were forecasting a profit of 51 cents on a business turnover of $ 4.59 billion on average, according to FactSet.

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The shares reached their highest level since the collapse of the Internet bubble, which reached $ 64.66 on May 30, 2018 at the peak of the memory chip boom, before falling from 56% to 28%. , 39 USD over the next seven months, with inventory problems becoming more obvious.

Shares of Micron closed Thursday with a 1.8% drop to $ 48.60. In comparison, the S & P 500 index