Micron Technology (MU) shares plummeted by over 5% in extended trading on Wednesday following the release of its third-quarter earnings report, which fell short of analysts’ profit expectations and provided weak revenue guidance.
For the fiscal third quarter of 2024, Micron reported revenues of $6.81 billion, an increase of over 81% compared to the same period last year and slightly above the $6.7 billion anticipated by analysts, as per Visible Alpha’s estimates.
The company posted a net income of $332 million, a significant turnaround from the $1.9 billion loss in the same quarter the previous year. However, this figure still fell short of analysts’ expectations of $399.39 million. The diluted earnings per share (EPS) stood at 30 cents, meeting analysts’ forecasts.
“Strong AI demand and robust execution enabled Micron to achieve a 17% sequential revenue growth, exceeding our guidance range for fiscal Q3,” said Micron CEO Sanjay Mehrotra. “We are gaining market share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue reached a record high, showcasing the strength of our AI product portfolio across DRAM and NAND.”
Looking ahead, Micron projected fourth-quarter fiscal 2024 revenues of $7.6 billion, aligning with Visible Alpha’s projections. However, analysts from J.P. Morgan and Citi indicated that investor expectations were higher.
Following the earnings announcement, Micron shares were down 5.7%, trading at $134.26 in extended trading as of 5:15 p.m. ET on Wednesday.
