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Micron Stock Plunges on Weak Q2 Guidance
Sanjay Mehrotra, CEO of Micron Technology Inc., speaks during an interview with CNBC at the New York Stock Exchange (NYSE) in New York City, U.S., on April 26, 2024.
Brendan Mcdermid | Reuters
Micron Shares plunged 13% in extended trading Wednesday after the chipmaker issued weak second-quarter guidance despite higher earnings in the latest period.
Here’s how the company fared compared to the expectations of analysts surveyed by LSEG:
- Earnings per share: $1.79, adjusted vs. expected $1.75
- 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 earnings per share of $1.91, according to LSEG.
The computer memory and storage company has seen its shares rise 22% so far this year through the market close, trailing the Nasdaq’s 29% rise. In the earnings report, Micron highlighted data centers and artificial intelligence companies with Nvidia processors as growth areas.
“Although consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year,” CEO Sanjay Mehrotra said 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.”
LOOK: Micron Stock Continues to Fall as Expected
