Micron Technology Inc.’s results came in better than expected Wednesday as the memory-chip maker reported revenue in the extended session that topped Wall Street estimates, but its bottom-line forecast fell below consensus.
shares declined nearly 4% after hours Thursday following a 0.4% rise to close the regular session at $68.21.
For the fiscal fourth quarter, Micron reported a loss of $1.43 billion, or $1.31 a share, versus net income of $1.49 billion, or $1.35 a share, in the year-ago period. The adjusted loss, which excludes stock-based-compensation expenses and other items, was $1.07 a share, versus adjusted earnings of $1.45 a share in the year-ago period.
Revenue fell to $4.01 billion from $6.64 billion in the year-ago quarter.
Analysts surveyed by FactSet forecast Micron to report a fourth-quarter loss of $1.15 a share on revenue of $3.95 billion.
For the first quarter, Micron expects a loss of $1.14 to $1 a share on revenue of $4.2 billion to $4.6 billion. Analysts surveyed by FactSet, however, had forecast, on average, a loss of 88 cents a share on revenue of $4.24 billion.
“During fiscal 2023, amid a challenging environment for the memory and storage industry, Micron sustained technology leadership, launched a significant number of leading-edge products, and took decisive actions on supply and cost,” Sanjay Mehrotra, Micron’s chief executive, said in a statement.
“Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply,” Mehrotra said. “We look forward to record industry (total addressable market) revenue in 2025 as AI proliferates from the data center to the edge.”
Read: Micron’s stock might be an excellent play for AI investors who want to diversify beyond Nvidia
In the company’s last earnings report, Mehrotra called the bottom in the memory-chip market, but warned that smartphone and PC weakness could cut into AI gains.
Also in late June, the company snapped a losing streak of four consecutive quarters of reporting revenue that fell short of the Wall Street consensus. The quarter before snapping that streak, Micron reported its largest quarterly loss on record writing off more than $1.4 billion in inventory.
Micron shares are up 36.5% year to date, compared with a 32.8% gain by the PHLX Semiconductor Index
a 11.3% gain by the S&P 500 index
and a 25.1% rise in the Nasdaq Composite
Micron’s bottom line exceeds Wall Street expectations, but outlook doesn’t