Memory chip maker Micronic technology (MU) beat Wall Street’s targets for its fiscal fourth quarter on Tuesday night. But he seriously missed views with his forecast for the current quarter. MU stock fell amid the extended trade.
The Boise, Idaho-based company earned adjusted $ 2.42 per share on sales of $ 8.27 billion in the quarter ended Sept. 2. Analysts expected Micron to earn $ 2.33 per share on sales of $ 8.23 billion, according to FactSet. Year over year, Micron’s profits jumped 124% while sales jumped 37%.
For the current quarter, Micron expects to earn adjusted $ 2.10 per share on sales of $ 7.65 billion. Wall Street was modeling a profit of $ 2.53 per share for Micron on sales of $ 8.54 billion in the fiscal first quarter, FactSet said. In the prior year period, Micron earned 78 cents a share on sales of $ 5.77 billion.
“Micron’s outstanding performance in the fourth quarter capped a year of several milestones,” Chief Executive Officer Sanjay Mehrotra said in a press release. “During fiscal 2021, we established DRAM and Nand technology leadership, generated record revenues in several markets and initiated a quarterly dividend. “
He added, “The demand outlook for 2022 is strong and Micron provides innovative solutions to our customers, fueling our long-term growth. “
MU Stock Sinks
In after-hours trading in the stock market today, MU stock fell 3.3% to nearly 70.80. During Tuesday’s regular session, MU stock slipped 2.8% to 73.10.
MU stock has been under pressure since early August, when market research firm TrendForce forecasted lower prices for PC memory chips in the fourth quarter. He cited high inventories of dynamic random access memory, or DRAM, chips in the supply chain.
“It appears Micron expects the supply-demand environment, especially in DRAM, to equalize faster than the market / analysts expected,” said Nicholas Welsch-Lehmann, analyst from Third Bridge, in a note to clients. The “question becomes whether this is a retarder or the start of a prolonged period of weakness.”
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technologies, software and semiconductor stocks.
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