[ad_1]
Memory-chip maker Micron Technology (MU) late Thursday beat Wall Street’s earnings target for its fiscal third quarter and matched views on sales. However, it badly missed estimates with its guidance for the current quarter. MU stock fell in extended trading.
X
The Boise, Idaho-based company earned an adjusted $2.59 a share on sales of $8.64 billion in the quarter ended June 2. Analysts polled by FactSet expected Micron earnings of $2.43 a share on sales of $8.64 billion. On a year-over-year basis, Micron earnings rose 38% while sales climbed 16%.
For the current quarter, Micron forecast adjusted earnings of $1.63 a share on sales of $7.2 billion. However, analysts were expecting earnings of $2.60 a share on sales of $9.15 billion in Micron’s fiscal fourth quarter. In the year-earlier quarter, Micron earned $2.42 a share on sales of $8.27 billion.
“Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” Chief Executive Sanjay Mehrotra said in a news release. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
MU Stock Has Subpar Composite Rating
In after-hours trading on the stock market today, MU stock dropped 2.6% to 53.87. During the regular session Thursday, MU stock retreated 1.3% to close at 55.28.
In recent weeks, Wall Street analysts have been tempering their expectations for semiconductor companies ahead of second-quarter earnings season.
MU stock ranks sixth out of 10 stocks in IBD’s Computer-Data Storage industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 46 out of 99.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Chip Design Firms Upgraded As Chipmakers Downgraded
Qualcomm Stock Rises As Apple’s 5G Modem Chip ‘Fails,’ Analyst Says
PC Market Chatter Roils Chip, Computer Makers
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens
[ad_2]
Source link
