Micron Technology’s stock plunged after the company lowered its second-quarter revenue and earnings forecasts, citing a delayed PC refresh cycle and elevated customer inventory in smartphones.
Shares of Micron plummeted on Thursday after the chipmaker issued weaker-than-expected guidance for the second quarter. Micron expects further delay in the PC refresh cycle and cited pockets of elevated customer inventory in smartphones, analysts at Stifel wrote in a report to clients.Shares plummeted 16% on Thursday — heading for their worst day since March 2020 and the start of the Covid pandemic — after the chipmaker issued disappointing second-quarter guidance in its earnings report.
For the fiscal second quarter, Micron said it expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. Analysts were expecting revenue of $8.98 billion and EPS of $1.91, according to LSEG.On the earnings call, CEO Sanjay Mehrotra said the company, which provides computer memory and storage, is seeing slower growth in parts of consumer devices and is experiencing'inventory adjustments.' Micron reported an earnings beat from the first quarter, with earnings per share coming in at $1.79, topping the $1.75 average analyst estimate. Revenue jumped 84% from a year earlier to $8.71 billion, meeting estimates. The growth was driven by a 400% increase in data center revenue due largely to demand for artificial intelligence,'We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders,' the company wrote in its report
Micron Technology Earnings Guidance Chipmaker PC Smartphones Inventory AI
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