Micron Technology Inc (NASDAQ: MU) is holding its own in extended trading even after the chipmaker said its current quarter results will come in significantly below the Street estimates. It, however, topped estimates in fiscal Q3.
Notable figures in Micron Q3 earnings report
- Net income printed at $2.63 billion versus year-ago figure of $1.74 billion
- Per-share earnings of $2.34 were significantly above last year’s $1.52
- On an adjusted basis, EPS came in at $2.59 in the recent financial quarter
- Revenue jumped 16.5% to $8.64 billion, as per the earnings press release
- FactSet consensus was for $2.44 of adjusted EPS on $8.63 billion in revenue
- Adjusted gross margin in the financial third quarter stood at 47.4%
Future outlook and CEO’s remarks
Micron also declared 11.5 cents a share of quarterly dividend on Thursday. For Q4, it expects $7.2 billion ± $400 million in revenue on $1.63 ± $0.20 in adjusted per-share earnings.
This compares to the analysts’ forecast for a much higher $9.1 billion in revenue and $2.62 of adjusted EPS. In the earnings press release, CEO Sanjay Mehrotra said:
Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023.
Stephanie Link reacts to Micron Q3 results
Micron now warns of a 10% hit to PC sales in calendar 2022 and about a 5.0% decline in smartphones sales. It also blamed China lockdown for aggravating supply constraints. Still, on CNBC’s “Closing Bell: Overtime”, Hightower’s Stephanie Link said:
I think as supply chain starts to get fixed, [Micron] will be left with a lot of inventory. The stock is cheap even after you cut the numbers. But, would you pay for something that just don’t have a lot of visibility going forward.
The stock is down roughly 40% for the year.
The post Micron shares holding up despite weak guidance: ‘stock is cheap’ appeared first on Invezz.
Source: https://invezz.com/news/2022/06/30/micron-shares-holding-up-despite-weak-guidance-stock-is-cheap/