Memory-Chip Maker Micron Beats Fiscal Q4 Targets But Outlook Misses

 Memory-Chip Maker Micron Beats Fiscal Q4 Targets But Outlook Misses

Memory-chip maker Micron Technology (MU) late Tuesday beat Wall Street’s targets for its fiscal fourth quarter. But it badly missed views with its guidance for the current quarter. MU stock fell in extended trading.


The Boise, Idaho-based company earned an adjusted $2.42 a share on sales of $8.27 billion in the quarter ended Sept. 2. Analysts had expected Micron earnings of $2.33 a share on sales of $8.23 billion, according to FactSet. On a year-over-year basis, Micron earnings jumped 124% while sales surged 37%.

For the current quarter, Micron expects to earn an adjusted $2.10 a share on sales of $7.65 billion. Wall Street was modeling Micron earnings of $2.53 a share on sales of $8.54 billion in its fiscal first quarter, FactSet said. In the year-earlier period, Micron earned 78 cents a share on sales of $5.77 billion.

“Micron’s outstanding fourth-quarter execution capped a year of several key milestones,” Chief Executive Sanjay Mehrotra said in a news release. “In fiscal 2021, we established DRAM and Nand technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend.”

He added, “The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth.”

MU Stock Sinks

In after-hours trading on the stock market today, MU stock dropped 3.3%, near 70.80. During the regular session Tuesday, MU stock slid 2.8% to 73.10.

MU stock has been under pressure since early August when market research firm TrendForce forecast weakening prices for PC memory chips in the fourth quarter. It cited high inventories of dynamic random-access memory, or DRAM, chips in the supply chain.

“It looks like Micron expects the supply-demand environment, particularly in DRAM, to equalize more quickly than the market/analysts were expecting,” Third Bridge analyst Nicholas Welsch-Lehmann said in a note to clients. The “question becomes the extent to which this is a speed bump or the start of a period of extended weakness.”

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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