Memory-chip maker Micron Technology reported better-than-expected fiscal fourth-quarter profit and revenue, but its outlook for the current quarter was mixed. While Micron’s earnings and sales exceeded estimates, the company predicted an adjusted loss of $1.07 per share for the current quarter, the same as the previous quarter, on revenue of $4.4 billion. Analysts called for a smaller loss of 88 cents per share on slightly higher sales. Despite the positive results, Micron’s stock fell nearly 4% in premarket trading. The company expects a market recovery in 2024, driven by increasing demand and disciplined supply.
Although Micron’s fiscal fourth-quarter results exceeded expectations, the company’s outlook for the current quarter left investors with mixed feelings. Micron reported a 26% decrease in earnings and a 40% decline in revenue compared to the same period last year. However, the results surpassed analysts’ expectations amid lowered expectations due to the ongoing cyclical industry downturn. Nevertheless, Micron’s prediction of an adjusted loss of $1.07 per share for the current quarter, the same as the previous quarter, on revenue of $4.4 billion fell short of analysts’ estimates of a smaller loss and slightly higher sales.
Micron Technology remains cautiously optimistic about the future, with its CEO expressing confidence in the company’s performance positioning it well for a market recovery in 2024. Chief Executive Sanjay Mehrotra believes that increasing demand and disciplined supply will drive this recovery. Micron makes two main types of memory chips, and analysts expect memory chip pricing to strengthen in fiscal 2024. However, the Chinese government’s plan to ban Micron memory chips from its computer network infrastructure poses a potential challenge to the company’s growth prospects. Despite this, Micron’s long-term outlook remains positive, especially as artificial intelligence workloads drive demand for its memory chips in data centers.