Micron Chief Executive Officer Sanjay Mehrotra speaks before President Joe Biden speaks about chips, science, law and the U.S. investment agenda at the Milton J. Rubenstein Museum in Syracuse, New York, April 25, 2024. (CEO).
Andrew Caballero-Reynolds | AFP | Getty Images
micron Shares plunged 16% on Thursday after the semiconductor maker released disappointing second-quarter guidance in its earnings report. It was the worst day since March 2020 and since the start of the coronavirus pandemic.
The stock closed at $87.09, down about 45% from its all-time high in June.
For its 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. Analysts had expected revenue of $8.98 billion and EPS of $1.91, according to LSEG.
The computer memory and storage company is experiencing “inventory correction” as growth slows in some of its consumer devices, CEO Sanjay Mehrotra said on an earnings call. said.
“Micron expects further delays in PC refresh cycles and noted some increases in smartphone customer inventories,” Stifel analysts said in a note to clients. The company maintained its “buy” rating on the stock, but lowered its price target from $135 to $130.
Micron reported higher earnings than the first quarter, with earnings of $1.79 per share, beating the average analyst estimate of $1.75. Sales rose 84% year over year to $8.71 billion, meeting expectations. This growth was driven by a 400% increase in data center revenue, primarily due to demand for artificial intelligence. Micron said.
“We continue to gain share in the highest margin and strategically important parts of the market, leveraging AI-driven growth to create substantial value for all stakeholders,” the company said in a report. “We are in a very advantageous position.”
clock: Micron stock plummets
