Micron Falls on Weak Profit Forecast
Micron Technology (MU:US) has released its fourth-quarter earnings report, which sent its shares more than 5% lower on Thursday.
Adjusted revenue of $4.01 billion, reflecting a 40% decrease compared to the previous year. This figure surpassed the average analyst estimate of $3.93 billion.
Adjusted loss per share amounted to $1.07, as opposed to earnings per share of $1.45 in the same period last year. The estimated loss per share was $1.18.
Adjusted operating loss reached $1.21 billion, while the estimated loss was $1.25 billion.
"Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply. We look forward to record industry TAM revenue in 2025 as AI proliferates from the data center to the edge," CEO Sanjay Mehrotra said.
For the upcoming fiscal first quarter, the company has provided guidance, anticipating a loss in the range of $1 to $1.14 per share. This differs from the consensus estimate, which was a loss of $0.92 per share.
Additionally, Micron expects revenue in the range of $4.2 billion to $4.6 billion, while the consensus estimate was $4.22 billion.
"We believe the stock continues to move in a positive direction as we progress through 2023 and into 2024 as the market continues to discount improving revenue/pricing/margin/earnings power," JPMorgan analysts wrote in a client note.
Congressman Ro Khanna has been actively trading MU shares throughout the year. Most notably, he reported the $50,000 - $100,000 sale of the stock in May.
