Micron Technology (NASDAQ:MU) shares tumbled 6.5% in extended-hours trading on Wednesday after the memory chipmaker issued guidance that was in-line with estimates, overshadowing a stronger-than-expected third-quarter.
For the period ending May 30, Micron earned an adjusted $0.62 per share as revenue jumped 82% year-over-year to $6.81B. Cash flow from operations for the period was $2.48B, below the $3.24B estimate, while gross margin clocked in at 28.1%.
A consensus of analysts expected the company to earn $0.53 per share on $6.67B in revenue. The company attributed much of its sales growth to artificial intelligence, with AI demand driving 50% of its sequential revenue growth in the data center. Micron also said that AI-demand has caused tightness in leading edge nodes. “We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND,” CEO Sanjay Mehrotra said in a statement. “We are excited about the expanding AI-driven opportunities ahead, and are well positioned to deliver a substantial revenue record in fiscal 2025.”
Looking to the next quarter, Micron expects to earn between $1 and $1.16 per share on an adjusted basis, with revenue expected to be $7.6B, plus or minus $200M. Adjusted gross margins are forecast to be between 33.5% and 35.5%, with the estimate at 34.5%.Analysts were expecting the company to earn $1.02 per share on $7.58B in revenue.The company will host a conference call at 5:30 p.m. EST to discuss the results.
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