Micron Technology, Inc. (NASDAQ: MU) reported its first quarter financial results after market close on Tuesday. Micron missed revenue estimates, but beat earnings estimates, which sent shares into a mixed reaction.
Micron shares plunged by 4.3% shortly after it announced its quarterly results.
For the first quarter, Micron reported earnings per share of USD 2.97 on revenue of USD 7.91 Billion. Analysts forecasted earnings per share of USD 2.95 on revenue of USD 8 Billion. Most analysts projected Micron to report sales that was lower than the consensus estimates.
“Micron reported strong profitability in the fiscal first quarter, highlighted by double-digit year-over-year revenue growth across our major markets and solid business execution,” Micron Technology President and Chief Executive Officer Sanjay Mehrotra said.
According to Bloomberg, Micron sees most of it sales from its chip, which is a primary component used in computers and mobile devices. Micron saw significant growth earlier in the year due to the increasing demand from data-center operators and applications for vehicle.
However, demand began to weaken throughout the second half of the year as some customers built too many stockpiles and cut back orders.
Micron did not provide a guidance for the next upcoming quarter or for the rest of the fiscal year. However, Mehrotra remains optimistic for the Company despite its rather disappointing year so far.
“Despite weak near-term industry supply-demand dynamics entering calendar 2019, Micron is well-positioned to deliver healthy profitability throughout the year. We remain bullish on the long-term secular growth trends driving the memory and storage industry.” concluded Mehrotra.
Micron is among the many technology companies who reported weaker-than-expected financial results. After many tech companies missed their estimates, most of their shares erased gains from this year alone.
Micron shares have fallen by 20.9% this year, performing well under the S&P 500 Index’s loss of 4.77% this year.