Shares of Micron Know-how (MU 1.65%) have been sliding this morning after the corporate reported its third-quarter outcomes. The corporate beat analysts’ consensus earnings and income estimates for the quarter, however the firm’s steering for the upcoming quarter disenchanted buyers.
In consequence, the tech inventory was down by 5% at 12:20 p.m. ET.
Micron reported non-GAAP (adjusted) earnings of $2.59 within the quarter, which beat Wall Avenue’s consensus estimate of $2.44 per share. Moreover, the tech firm’s gross sales of $8.64 billion have been up 16% from a 12 months in the past and simply inched previous analysts’ common estimate of $8.63 billion.
However as an alternative of trying on the firm’s top- and bottom-line beats, buyers as an alternative latched on to the corporate’s steering for the fourth quarter.
Micron’s administration mentioned that non-GAAP earnings will likely be within the vary of $1.43 to $1.83 per share, which is decrease than Wall Avenue’s common estimate of $2.62 per share.
Fourth-quarter income steering additionally fell beneath expectations, with administration saying whole gross sales will likely be $7.2 billion, on the midpoint of steering, which is much beneath the $9 billion analysts have been anticipating.
Buyers weren’t comforted by administration’s feedback within the quarterly press launch, both. CEO Sanjay Mehrotra mentioned, “Just lately, the trade demand surroundings has weakened, and we’re taking motion to average our provide progress in fiscal 2023.”
Whereas he added that the corporate is assured about long-term demand, his feedback paired with the corporate issuing disappointing steering for the fourth quarter spooked Micron buyers at present.