Micron Technology Shares Fall After Announcing Earnings
Micron Technology (NASDAQ:MU) shares fell over 2% in after-hours trading on Thursday after the company announced its fiscal fourth quarter earnings.
The company beat profit expectations with earnings per share of $1.45, $0.04 better than the analyst estimate of $1.41. Revenue, however, missed estimates, coming in at $6.64 billion against the consensus estimate of $6.81 billion.
The semiconductor manufacturing company said it had taken “decisive steps” to reduce supply growth and cut capital spending on wafer fab equipment by about 50% compared to last year. The company added that it expects to “emerge from this downturn well positioned to capitalize on long-term demand for memory and storage.”
Micron also missed guidance estimates. The company forecasts first-quarter fiscal 2023 earnings per share of $0.14 to ($0.06) versus consensus of $0.64, and first-quarter revenue of $4 billion to $4.5 billion versus consensus of $5.62 billion.
“In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered positive free cash flow for the sixth consecutive year, enabling us to return a record $2.9 billion to shareholders,” said Sanjay Mehrotra, President and CEO of Micron Technology. “Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio and strong balance sheet put Micron on solid footing to navigate the weakening near-term supply-demand environment.”
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