Micron Technology Inc Shares Fall Following Weak Guidance

Investing.com — Micron Technology Inc (NASDAQ:MU) shares fell 14% in extended trading on Wednesday after the chipmaker issued second-quarter guidance that was well below Wall Street expectations.

The company forecast adjusted earnings between $1.33 to $1.53 per share, missing analysts’ consensus estimate of $1.97.

Revenue for the second quarter is expected to be approximately $7.90 billion, plus or minus $200 million, significantly short of the $8.97 billion that analysts estimated.

Micron also indicated a weaker-than-expected outlook for second-quarter bit shipments, raising investor concerns.

> CEO Statement: “While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”

For the reported quarter, Micron Technology's per share profit was $1.79, which was 6 cents better than the analyst estimate of $1.73.

The company's revenue, which is also a supplier to Nvidia (NASDAQ:NVDA), for the first quarter came in at $8.71 billion, ahead of the consensus estimate of $8.68 billion.