Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Micron CEO Sanjay Mehrotra speaks before President Joe Biden delivers remarks on the CHIPS and Science Act and his Investing in America agenda at the Milton J. Rubenstein Museum in Syracuse, New York on 25 April 2024.
Andrew Caballero-Reynolds | AFP | Getty Images
Micro Shares plunged 16% on Thursday, the worst day since March 2020 and the start of the Covid pandemic, after the chipmaker issued disappointing second-quarter guidance in its earnings report.
Shares fell to $87.09 at the close, down 45% from their June all-time high.
For the fiscal 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. According to LSEG, analysts were expecting revenue of $8.98 billion and EPS of $1.91.
On the earnings call, CEO Sanjay Mehrotra said the company, which provides computer memory and storage, is experiencing slower growth in parts of consumer devices and is experiencing “inventory adjustments.”
“Micron expects a longer delay in the PC upgrade cycle and has cited pockets of high customer inventory in smartphones,” Stifel analysts wrote in a note to clients. The firm maintained its buy rating on the stock but cut its price target to $130 from $135.
Micron reported an increase in earnings from the first quarter, with earnings per share at $1.79, beating the average analyst estimate of $1.75. Revenue rose 84% from a year earlier to $8.71 billion, meeting estimates. Growth was driven by a 400% increase in data center revenue due primarily to demand for artificial intelligence. said Micron.
“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,” the company wrote in its report
LOOK: Micron shares fall
