Why Semiconductor Manufacturing Company Micron Technology's Shares Are Taking A Hit Today
Portfolio Pulse from Nabaparna Bhattacharya
Micron Technology, Inc. (NASDAQ:MU) shares fell despite the company raising its Q1 FY24 revenue outlook to $4.7 billion, above the street view of $4.46 billion. The improved forecast is due to a better supply and demand balance and pricing. Non-GAAP gross margin is expected to be between (0.5%) and 0.0%, an improvement from the previous (4%) ± 2%. However, non-GAAP operating expenses are projected to be higher at $990 million compared to the earlier $900 million ± $15 million. Non-GAAP EPS is anticipated to be around $(1.00), slightly better than the previous $(1.07) ± $0.07 but still below the street view of $(0.99). Despite the positive forecast, MU shares dropped by 3.73% to $74.62.
November 28, 2023 | 3:45 pm
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Micron Technology raised its Q1 FY24 revenue forecast to $4.7 billion, surpassing estimates, with an improved gross margin outlook. However, shares dropped due to higher projected operating expenses and a non-GAAP EPS that is below the street view.
Despite Micron's improved revenue and gross margin outlook, the stock price fell, likely due to the higher than expected operating expenses and the non-GAAP EPS still being below analyst expectations. This suggests that investors may be focusing on the increased costs and potential earnings miss rather than the improved sales outlook.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100