Memory-chip manufacturers Micron Technology Micron Micron (MU) easily beat Wall Street targets for its fiscal third quarter late Wednesday. But it disappointed investors with its in-line guidance for the current quarter. Micron stock declined in extended trading.
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The Boise, Idaho-based company earned an adjusted profit of 62 cents per share on sales of $6.81 billion in the quarter ended May 30. Analysts surveyed by FactSet had expected Micron to earn 48 cents per share on sales of $6.67 billion. In the same period last year, Micron incurred an adjusted loss of $1.43 per share on sales of $3.75 billion.
For the current quarter, Micron forecast adjusted earnings of $1.08 per share on sales of $7.6 billion. Analysts had forecast earnings of $1.02 per share on sales of $7.59 billion in the fiscal fourth quarter. In the same quarter last year, Micron posted an adjusted loss of $1.07 per share on sales of $4.01 billion.
“Strong AI demand and robust implementations enabled Micron to achieve 17% sequential revenue growth, exceeding our guidance range, in fiscal 2013,” Chief Executive Officer Sanjay Mehrotra said in a news release.
Micron shares fell after the report
Micron stock fell more than 5% to 135 in after-hours trading on the stock market today. Micron stock rose 0.9% during the regular session on Wednesday to close at 142.36. On June 18, MU stock hit an all-time high of 157.54.
Mehrotra said Micron is gaining market share in higher-margin products such as high-bandwidth memory. Also, its revenue from solid-state drives for the data center reached a record high in the quarter, he said.
“We are excited about the AI-driven opportunities going forward, and are positioned to generate substantial revenue records in fiscal 2025,” he added.
Micron shares have hit record highs this year amid a cyclical surge in memory-chip sales. The company is also benefiting from sales of high-bandwidth memory devices to data centers running artificial intelligence applications.
According to IBD MarketSurge charts, Micron stock hit a buy point of 130.54 from a cup base on May 20. But it ended the day below that buy point at 129. Micron stock was back into the 5% buy zone a few days later.
Follow Patrick Seitz on X (formerly Twitter) @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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