Micron Shares Fall Amid Disappointing Forecast
Sep 29, 2021 By MarketDepth
Micron Technology Inc. (NASDAQ: MU), an American memory chip maker, surpassed Wall Street expectations for its fiscal fourth quarter. Nevertheless, the company’s shares fell 3.7% in early morning trading Wednesday following the report of its outlook for the current quarter.
The company reported fourth-quarter earnings of USD2.42 per share, compared to the expected USD2.33, per share. Sales amounted to USD8.27 Billion within the quarter, higher than analysts anticipated USD8.23 Billion.
However, for the current quarter the company anticipates to earn USD2.10 per share, lower than Wall Street’s forecast of USD2.53 per share. Furthermore, Micron anticipates sales of USD7.65 Billion, also lower than analysts expected USD8.54 Billion within its fiscal first quarter.
“Micron’s outstanding fourth-quarter execution capped a year of several key milestones. In fiscal 2021, we established DRAM and Nand technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend.”Chief Executive Sanjay Mehrotra
He continued on to say, “The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth.”
Inventory Still a Concern
Investors remain concerned that the surge in memory-chip demand was due to the panic fueled by the pandemic to buy and hold products. However, Mehrotra assures that Inventory levels remain stable throughout the customer base.