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have been down in early buying and selling Wednesday after the corporate beat expectations for its quarterly earnings Tuesday however did not impress Wall Road with its outlook.
The reminiscence maker reported fiscal fourth-quarter web earnings of $2.72 billion, which quantities to $2.39 a share, in contrast with a web revenue of $988 million, or 87 cents a share, within the year-ago interval. Adjusted for stock-based compensation, amongst different issues, earnings have been $2.42 a share. Income rose 37%, to $8.27 billion.
The consensus estimate for adjusted earnings was $2.33 a share on income of $8.2 billion.
Micron (ticker: MU) stated that it anticipated fiscal first-quarter earnings of roughly $2 a share, on income of about $7.65 billion. Analysts have been forecasting earnings of $2.53 and income of $8.54 billion.
Shares have been down 3.7% in premarket buying and selling.
Micron chief government Sanjay Mehrotra stated in ready remarks that the demand for reminiscence in 2022 is powerful, and can develop within the “mid-to-high teens.” Flash storage, which Micron additionally makes, will develop roughly 30%, he stated. The corporate expects a “healthy industry supply-demand balance” and robust profitability subsequent 12 months.
“Industry trends like the broad integration of artificial intelligence into all computing, proliferation of the intelligent edge, continued data center growth, and deployments of 5G networks create new and expanding opportunities for Micron,” Mehrotra stated.
However robust demand wasn’t sufficient to assuage traders.
Semiconductors of every kind have been briefly provide, which has led traders to anticipate outsize returns for the businesses within the enterprise. As a result of chip firms ought to be capable of promote mainly every thing they’re able to producing, traders have anticipated firms to report a wholesome earnings beat adopted by steering that additionally tops expectations.
Some analysis analysts had began to pare again expectations heading into Tuesday’s quarterly report. As Barron’s noted Monday, Citi Analysis analyst Christopher Danely stated he stays bullish on the corporate however expects reminiscence costs to drop within the coming months. Cheaper reminiscence might influence Micron’s revenue margins, although Danely expects costs to get well within the second half of subsequent 12 months.
Micron stated it deliberate $11 billion to $12 billion of capital spending in fiscal 2022. The corporate additionally stated it plans pay its first dividend cost of 10 cents a share subsequent month to shareholders of report as of Oct. 1.
Micron shares are down 2.8% this 12 months. The
PHLX Semiconductor index,
or SOX, has superior 19% on the 12 months, whereas the
index is up 16%.
Write to Max A. Cherney at [email protected]