Shares of Micron Technology (MU) are down 5% after the data storage company posted forward guidance that was in line with Wall Street forecasts.
The company’s financial results were better-than-expected. Earnings per share (EPS) came in at $0.62 U.S. compared to $0.51 U.S. that was expected among analysts.
Revenue for what was the company’s fiscal third quarter totaled $6.81 billion U.S. versus $6.67 billion U.S. that was the consensus estimate.
A year earlier, Micron reported a net loss of $1.9 billion U.S., or $1.73 U.S. per share.
Despite the latest top and bottom-line beats, investors appear disappointed with Micron’s revenue forecast that was in line with expectations.
Micron, which manufacturers computer memory and data storage products, said it expects EPS of $1.08 U.S. on revenue of $7.6 billion U.S. in the current second quarter of the calendar year.
Analysts on Wall Street had been looking for earnings of $1.05 U.S. on revenue of $7.6 billion U.S.
Micron is benefitting from the current boom in artificial intelligence (A.I.) as its advanced memory is used with A.I. graphics processing units (GPUs) made by companies such as Nvidia (NVDA). The company’s data centre business grew 50% on a quarter-over-quarter basis.
However, while Micron’s A.I. business is booming, the company said in its earnings statement that its smartphone and personal computer (PC) units are struggling with weak global demand.
Still, management at Micron highlighted on an earnings call with analysts and media that the company’s high bandwidth memory, the kind used in A.I. microchips, is sold out through 2025.
Prior to today (June 27), the stock of Micron had risen 113% over the last 12 months to trade at $142.36 U.S. per share.
