Memory-chip maker Micron Technology (MU) late Thursday beat Wall Street’s earnings target for its fiscal third quarter and matched views on sales. However, it badly missed estimates with its guidance for the current quarter. MU stock fell in extended trading.
The Boise, Idaho-based company earned an adjusted $2.59 a share on sales of $8.64 billion in the quarter ended June 2. Analysts polled by FactSet expected Micron earnings of $2.43 a share on sales of $8.64 billion. On a year-over-year basis, Micron earnings rose 38% while sales climbed 16%.
For the current quarter, Micron forecast adjusted earnings of $1.63 a share on sales of $7.2 billion. However, analysts were expecting earnings of $2.60 a share on sales of $9.15 billion in Micron’s fiscal fourth quarter. In the year-earlier quarter, Micron earned $2.42 a share on sales of $8.27 billion.
“Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” Chief Executive Sanjay Mehrotra said in a news release. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
MU Stock Has Subpar Composite Rating
In after-hours trading on the stock market today, MU stock dropped 2.6% to 53.87. During the regular session Thursday, MU stock retreated 1.3% to close at 55.28.
In recent weeks, Wall Street analysts have been tempering their expectations for semiconductor companies ahead of second-quarter earnings season.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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