Micron’s shares are falling along with earnings, and revenue forecasts are disappointing

Key takeaways

Shares of Micron Technology fell in extended trading Wednesday after the company reported a third-quarter profit that missed analyst estimates and provided soft revenue guidance.
While Micron’s revenue forecasts for the final quarter of fiscal 2024 were in line with those made by Visible Alpha, analysts at JP Morgan and Citi suggested investors had higher expectations.
The company’s third-quarter revenue rose from the same period last year and topped analyst estimates as data center solid-state drive (SSD) revenue hit a record high.

Shares of Micron Technology (MU) fell more than 5% in extended trading Wednesday after the company reported third-quarter earnings that missed analyst estimates and provided soft revenue guidance.

According to estimates compiled by Visible Alpha, Micron’s fiscal third quarter 2024 revenue was $6.81 billion, up more than 81% from the year-ago period and exceeding analyst expectations.

Micron saw a net profit of $332 million compared with a loss of $1.9 billion in the same period a year earlier, although the amount fell short of analyst forecasts. Diluted earnings per share were 30 cents, in line with estimates.

	Third quarter of fiscal year 2024	Analyst estimates for the third quarter of fiscal year 2024	Third quarter of fiscal year 2023
Income	$6.81 billion	$6.7 billion	$3.75 billion
Diluted earnings per share	30 cents	30 cents	($1.73)
Net income	$332 million	$399.39 million	($1.9 billion)

“Solid AI demand and strong execution enabled Micron to deliver 17% sequential revenue growth, exceeding our fiscal third quarter guidance,” said Micron CEO Sanjay Mehrotra, adding: “We are increasing share in high-margin products such as high-performance memory throughput (HBM), and SSD revenues in our data centers reached record levels, demonstrating the strength of our AI product portfolio in DRAM and NAND.

Micron forecast revenue of $7.6 billion for the final quarter of fiscal 2024, according to forecasts compiled by Visible Alpha, although analysts at JP Morgan and Citi suggested investors had higher expectations.

Micron shares fell 5.7% to $134.26 in extended trading as of 5:15 p.m. ET Wednesday, following the company’s earnings release.