Micron Stock Tumbles as Profit, Revenue Outlook Disappoint

By
Naomi Buchanan
Naomi Buchanan
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Naomi Buchanan is a reporter at Investopedia breaking down news stories that impact investors.
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Updated June 26, 2024
05:18 PM EDT
The Micron Technology logo on display on a company office building.

David Paul Morris / Bloomberg / Getty Images

Key Takeaways

  • Micron Technology shares tumbled in extended trading Wednesday after the company reported third-quarter profit that missed analysts' estimates and offered soft revenue guidance.
  • While Micron's revenue guidance for the final quarter of fiscal 2024 was in line with projections compiled by Visible Alpha, J.P. Morgan and Citi analysts suggested investors had higher expectations.
  • The company's revenue for the third quarter rose from the year-ago period and came just ahead of analysts' estimates as data center SSD revenue hit a record high.

Micron Technology (MU) shares tumbled over 5% in extended trading Wednesday after the company reported third-quarter profit that missed analysts' estimates and offered soft revenue guidance.

Micron's revenue of $6.81 billion for the fiscal third quarter of 2024 was up over 81% from the year-ago period and above analysts' expectations, according to estimates compiled by Visible Alpha.

Micron reported net income of $332 million compared to a loss of $1.9 billion in the same period a year prior, though that figure missed analysts' projections. Diluted earnings per share came in at 30 cents, in line with estimates.

   Q3 FY 2024  Analyst Estimates for Q3 FY 2024  Q3 FY 2023
Revenue $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)

“Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3,” Micron CEO Sanjay Mehrotra said, adding "We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND."

Micron projected revenue of $7.6 billion for the final quarter of fiscal 2024, in line with projections compiled by Visible Alpha, though J.P. Morgan and Citi analysts suggested investors had higher expectations.

Micron shares were down 5.7% at $134.26 in extended trading as of 5:15 p.m. ET Wednesday following the company's earnings release.

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  1. Micron Technology. "MICRON TECHNOLOGY, INC. REPORTS RESULTS FOR THE THIRD QUARTER OF FISCAL 2024."

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