Sanjay Mehrotra, CEO of Micron Technology Inc., speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 26, 2024.
Brendan Mcdermid | Reuters
Micron shares plunged 13% in extended trading on Wednesday after the chipmaker issued weak second-quarter guidance despite an earnings beat for the latest period.
Here’s how the company did compared to analysts’ expectations surveyed by LSEG:
- Earnings per share: $1.79, adjusted vs. $1.75 expected
- Revenue: $8.71 billion vs. $8.71 billion expected
For the second quarter, Micron said it expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. Analysts were expecting revenue of $8.98 billion and EPS of $1.91, according to LSEG.
The computer memory and storage company has seen its shares climb 22% year to date as of market close, trailing the Nasdaq’s 29% gain. In the earnings report, Micron highlighted data centers and artificial intelligence ventures with Nvidia’s processors as growth areas.
“While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year, said CEO Sanjay Mehrotra in a press release. “We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”