Micron disappoints on earnings outlook: ‘I want to be a buyer here’

on Sep 27, 2023
  • Micron reports market-beating results for its fourth financial quarter.
  • Jeff Kilburg shares his view on the U.S. semiconductor company.
  • Micron stock is currently up more than 25% versus the start of 2023.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Micron Technology Inc (NASDAQ: MU) lost about 5.0% in extended trading even though its reported better-than-expected results for its fiscal fourth quarter.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Why is Micron stock down in after-hours?

Copy link to section

The stock is being punished primarily because the earnings guidance for the current quarter failed to meet estimates.

Micron forecasts up to $1.14 a share of loss in its first quarter versus analysts at 88 cents on average. Still, Jeff Kilburg – the Chief Executive of KKM Financial said today:

I want to be a buyer here. In recent months, you have seen a rebound in memory chips.

Note that Micron does see its revenue falling between $4.2 billion and $4.6 billion in Q1 – better than $4.24 billion that experts had called for. The tech stock is still up more than 25% year-to-date.

Micron Q4 earnings snapshot

Copy link to section
  • Lost $1.43 billion versus the year-ago $1.49 billion
  • Per-share loss also declined from $1.35 to $1.31
  • Adjusted loss came in at $1.07 as per the press release
  • Revenue declined almost 40% YoY to $4.01 billion
  • Consensus was $1.15 a share loss on $3.95 billion revenue

Micron is now calling for a mid-single-digits growth in DRAM demand in calendar 2023 and a high-teens increase in NAND. On CNBC’s “The Exchange”, Kilburg also said:

We’re coming off the AI euphoria but at the end of the day, this is a semiconductor name. We’ll see memory chips come back, everything we utilize wants more and more memory.

He’s bullish even though China banned Micron chips earlier this year (find out more).


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA Earnings Reports Manufacturing North America Stock Market Tech World