Micron Technology Shares Plunge 14% After Q2 Guidance Misses Expectations
Shares of Micron Technology Inc (NASDAQ:) plummeted 14% in extended trading on Wednesday after the chipmaker issued second-quarter guidance that fell significantly short of Wall Street expectations.
The company forecast adjusted earnings of $1.33 to $1.53 per share, missing analysts’ consensus estimate of $1.97. Revenue for the second quarter is expected to be $7.90 billion, plus or minus $200 million, which is significantly below the $8.97 billion estimated by analysts.
In addition to the disappointing guidance, Micron also flagged a weaker-than-expected outlook for second-quarter bit shipments, further adding to investor concerns.
Despite the disappointing news, Micron’s CEO expressed optimism, stating that while consumer-oriented markets are weaker in the near term, the company anticipates a return to growth in the second half of its fiscal year. The CEO also highlighted Micron’s ability to gain share in the highest margin and strategically important parts of the market, as well as its exceptional positioning to leverage AI-driven growth.
For the reported quarter, Micron Technology reported a per-share profit of $1.79, 6 cents better than the analyst estimate of $1.73. Revenue for the quarter came in at $8.71 billion, ahead of the consensus estimate of $8.68 billion.
