Micron’s Stock Tumbles as Its Outlook Disappoints | Global News Avenue

Micron Technology (exist) issued a revenue outlook that fell short of analysts’ expectations, sending shares lower in extended trading on Wednesday.

Memory chip makers and Nvidia (NVDA) Partners expect fiscal second-quarter revenue of $7.9 billion, plus or minus $200 million, below the $8.93 billion analyst consensus compiled by Visible Alpha. The company’s dilution forecast Earnings per share (EPS) Prices between $1.16 and $1.36 were also lower than expected.

“Despite recent weakness in consumer-oriented markets, we expect a return to growth in the second half of this fiscal year,” Micron CEO Sanjay Mehrotra said in a press release.

In the first fiscal quarter ended November 28, Micron achieved a better-than-expected profit of $1.87 billion, or $1.67 per share, compared with a loss of $1.23 billion, or $1.12 per share, in the same period last year. Revenue rose 84% to a record $8.71 billion, just below analysts’ expectations and slightly above the midpoint of management’s previous guidance.

Following the news, Micron Technology shares fell more than 13% in after-hours trading on Wednesday. As of Wednesday’s close, 2024 shares were up nearly 22%.