Memory-chip maker Micron Technology late Wednesday handily beat Wall Street's targets for its fiscal third quarter. But it disappointed investors with its in-line guidance for the current quarter. Micron stock fell in extended trading.
The Boise, Idaho-based company earned an adjusted 62 cents a share on sales of $6.81 billion in the quarter ended May 30. Analysts polled by FactSet had expected Micron to earn 48 cents a share on sales of $6.67 billion. In the year-earlier period, Micron lost an adjusted $1.43 a share on sales of $3.75 billion.
For the current quarter, Micron predicted adjusted earnings of $1.08 a share on sales of $7.6 billion. Analysts were modeling earnings of $1.02 a share on sales of $7.59 billion in the fiscal fourth quarter. In the same quarter last year, Micron lost an adjusted $1.07 a share on sales of $4.01 billion.
"Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3," Chief Executive Sanjay Mehrotra said in a news release.
Micron Stock Drops After Report
In after-hours trading on the stock market today, Micron stock tumbled more than 5% to 135. During the regular session Wednesday, Micron stock climbed 0.9% to close at 142.36. MU stock hit an all-time high 157.54 on June 18.
Micron is gaining market share in high-margin products like high-bandwidth memory, Mehrotra said. Also, its revenue from solid-state drives for data centers hit a record high in the quarter, he said.
"We are excited about the expanding AI-driven opportunities ahead, and are well positioned to deliver a substantial revenue record in fiscal 2025," he said.
Micron stock had surged to record heights this year amid a cyclical upturn in memory-chip sales. The company also is benefiting from sales of high-bandwidth memory devices to data centers running artificial intelligence applications.
On May 20, Micron stock hit a buy point of 130.54 out of a cup base, according to IBD MarketSurge charts. But it ended the day below that buy point at 129. Micron stock returned to the 5% buy zone days later.
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