Shares of Micron Technology (MU) are down 16% after the chipmaker announced forward guidance that fell short of Wall Street’s expectations.
The Boise, Idaho-based company reported earnings per share (EPS) of $1.79 U.S. for this year’s third quarter, which was ahead of the $1.75 U.S. expected among analysts.
Revenue in the quarter totaled $8.71 billion U.S., matching expectations on Wall Street.
Despite the decent Q3 results, Micron’s stock is falling after the company provided lacklustre guidance for the current quarter.
Management said they expect revenue of $7.90 billion U.S., plus or minus $200 million U.S., and EPS of $1.43 U.S., plus or minus $0.10 U.S.
That outlook fell far short of analysts’ expectations that called for revenue of $8.98 billion U.S. and EPS of $1.91 U.S.
Micron specializes in computer memory and storage. In its latest earnings report, the company highlighted data centres and artificial intelligence (A.I.) ventures with Nvidia’s processors as future growth areas.
Prior to today, the stock of Micron Technology had risen 26% this year and was trading at $103.90 U.S. per share.
