Memory-Chip Maker Micron Beats Q3 Targets, But In-Line Outlook Disappoints

Memory-chip maker Micron Technology (MU) 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.

↑
X

NOW PLAYING
How These Selling Strategies Can Prevent Major Damage To Your Portfolio

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.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

Cloud Capex Spending Binge To Continue In 2025, Aiding Super Micro, Arista Networks

Apple iPhone 16 Sales Likely ‘Stronger For Longer’

Newly Public Silvaco Stock Builds IPO Base After Q1 Report

MarketSurge: Research, Charts, Data And Coaching All In One Place

See Stocks On The List Of Leaders Near A Buy Point