2023-09-27 17:34:33 ET
Micron Technology Inc (NASDAQ: MU) lost about 5.0% in extended trading even though its reported better-than-expected results for its fiscal fourth quarter.
Why is Micron stock down in after-hours?
The stock is being punished primarily because the earnings guidance for the current quarter failed to meet estimates.
Micron forecasts up to $1.14 a share of loss in its first quarter versus analysts at 88 cents on average. Still, Jeff Kilburg – the Chief Executive of KKM Financial said today:
I want to be a buyer here. In recent months, you have seen a rebound in memory chips.
Note that Micron does see its revenue falling between $4.2 billion and $4.6 billion in Q1 – better than $4.24 billion that experts had called for. The tech stock is still up more than 25% year-to-date.
Micron Q4 earnings snapshot
- Lost $1.43 billion versus the year-ago $1.49 billion
- Per-share loss also declined from $1.35 to $1.31
-
Adjusted loss came in at $1.07 as per the
press release
- Revenue declined almost 40% YoY to $4.01 billion
- Consensus was $1.15 a share loss on $3.95 billion revenue
Micron is now calling for a mid-single-digits growth in DRAM demand in calendar 2023 and a high-teens increase in NAND. On CNBC’s “
The Exchange
”, Kilburg also said:
We’re coming off the AI euphoria but at the end of the day, this is a semiconductor name. We’ll see memory chips come back, everything we utilize wants more and more memory.
He’s bullish even though China banned Micron chips earlier this year (
find out more
).
The post
Micron disappoints on earnings outlook: ‘I want to be a buyer here’
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