Micron Technology's Fourth Quarter Business and Earnings Forecast Forecasts

Micron Technology set sales records and posted better-than-expected results in the fourth quarter of its quarter, contributing to higher chip maker shares in after-sales operations.

This helped investors look at the first quarter earnings and earnings forecasts, which are expected to be lower than analysts' expectations as fast growth rates begin to slow down and the Idaho-based company would be affected in the short term by investors. new US tariffs of 10% on Chinese imports of $ 200 billion.

Revenues increased 38 percent year-over-year to $ 8.44 billion in the quarter ended August 30, before the average forecast of $ 8.25 billion among analysts surveyed by Thomson Reuters.

This translates into a net profit of $ 4.33 billion, or $ 3.56 per diluted share, up nearly 83% from the previous year, and higher than market of $ 3.24 per diluted share.

Sanjay Mehrotra, chief executive, said in a statement that an "outstanding fourth quarter" had closed a record year, for which the company had announced a $ 50.4 billion increase in its revenue . "In the fourth quarter, we set revenue records in all our major markets, from automotive and industry to mobile and cloud data centers," he said.

In a conference call, the company expects to generate revenue of $ 7.9 billion to $ 8.3 billion for the current quarter, compared to analysts' forecasts of $ 8.4 billion, according to Thomson Reuters. Earnings should reach $ 2.95 per share, plus or minus 7 cents, compared to analysts' estimates for $ 3.06.

Micron has led weaker semiconductor maker stocks in recent weeks after Mehrotra said the company's Nand chip prices fell in the quarter, before many analysts reduced their view of the stock the area. On Thursday, he said Nand prices had dropped in the teenage age range from the previous quarter.

David Zinsner, chief financial officer, said during the company's conference call that Washington's tariffs on Chinese imports would have an impact on gross margins of about 0.5 point to 1 percentage point. In the fourth quarter, Micron's gross margin was 61%.

Micron shares rose 4.7% after hours. The shares reached their lowest level in seven months at the beginning of the month.