Micron Beats Earnings Estimates But Stock Falls As Outlook Remains Cautious Amid Industry Downturn

Micron's earnings and revenue topped analyst estimates but outlook was mixed
Net income fell 26% and revenue dropped 40% amid industry downturn
Lost adjusted $1.07 per share vs. expected loss of $1.15 per share
Revenue was $4.01 billion vs. $3.95 billion forecast
Forecasts adjusted loss of $1.07 per share on revenue of $4.4 billion next quarter
CEO says well-positioned for market recovery in 2024 driven by AI demand
MU stock fell over 5% on news as pricing stabilizes slowly

investors.com

Relevant topic timeline:

8/20/2023

1 AI Semiconductor Stock Emerging as a New Leader in Industrial Automation

### Summary Microchip Technology's stock has dropped over 15% from its all-time highs due to the semiconductor industry downturn, despite being an AI chip company. ### Facts - Microchip reported revenue of $2.29 billion for its fiscal 2024 first quarter, up 2.5% from the previous quarter and 16.6% from the same period last year. - Operating profit margin was over 48%, leading to a nearly 20% increase in adjusted earnings per share. - Microchip has been increasing its dividend payout and repurchasing stock with its rising profitability. - The stock sell-off is due to global economic concerns and a slight dip in year-over-year growth guidance for the next quarter. - Microchip is outperforming competitors like Texas Instruments, NXP Semiconductor, and Infineon in terms of growth and profit margins. - The company's full-system design capability and long-term supply arrangements with major customers contribute to its sustained growth. - Microchip's microcontrollers (MCUs) have diverse applications in industrial automation, self-driving systems, energy optimization, and more. - The stock trades at a low valuation of 13 times Wall Street analysts' expected earnings for next year. ### 📉 Microchip's stock has dropped over 15% due to semiconductor industry downturn. ### 📈 Microchip reported revenue of $2.29 billion, with a 2.5% increase from the previous quarter and 16.6% increase from the same period last year. ### 💰 The company is increasing dividend payout and stock repurchases with rising profitability. ### 🌍 Global economic concerns and a slight dip in growth guidance have led to the stock sell-off. ### 💪 Microchip is outperforming competitors like Texas Instruments, NXP Semiconductor, and Infineon in growth and profit margins. ### 💻 The company's full-system design capability and supply arrangements with major customers contribute to its sustained growth. ### 🚀 Microcontrollers have diverse applications in industrial automation, self-driving systems, energy optimization, and more. ### 💸 The stock trades at a low valuation of 13 times Wall Street analysts' expected earnings for next year.

9/18/2023

Cramer: Micron Could Spark Gains for Semiconductor Stocks Like AMD and Nvidia

Deutsche Bank has upgraded Micron Technology (MU) to buy, stating that the worst of the downcycle is behind the company and citing encouraging signs on pricing for memory chips, which could potentially benefit the entire semiconductor industry.

9/18/2023

Micron Technology Stock Upgraded Ahead of Earnings Report Next Week

Micron Technology stock rises after Deutsche Bank analyst upgrades the stock due to improving demand ahead of earnings.

9/21/2023

Micron Offers AI Hardware Diversification as Nvidia Stock Soars

Micron Technology Inc. could potentially benefit from the rollout of new high-bandwidth memory technology, providing a more diversified option for U.S. investors interested in artificial intelligence.

9/24/2023

Micron and Intel Offer AI Exposure and Turnaround Potential at Low Valuations

Despite being in a downturn, both Micron and Intel have the potential for a strong turnaround, with Micron currently demonstrating technology leadership and increasing momentum, making it a potential better buy than Intel.

9/27/2023

Micron Forecasts Weak Earnings on Slumping Chip Demand, But Sees Signs of Recovery by Late 2023

Micron Technology predicts poor earnings but anticipates a turnaround in the near future.

9/27/2023

Micron Forecasts Wider Loss Despite Strong Demand for Memory Chips Used in AI

Micron Technology prepares to increase production and become a supplier to Nvidia, despite forecasting a wider-than-expected loss in the first quarter due to bans on some of its products by the Chinese government.

9/28/2023

Stocks on the Move: Micron Falls on Weak Forecast, GameStop Rallies on New CEO, CarMax Earnings Drop Amid Lower Demand

Micron shares fall on weaker earnings forecast, GameStop appoints new CEO, CarMax's earnings decline due to weakening demand for used cars, Workday lowers long-term subscription growth target, Peloton and Lululemon announce strategic partnership, DigitalBridge's stock rises after business transformation, Concentrix's earnings miss expectations.

9/28/2023

Micron Stock Drops on Margin Outlook, But Analysts Still Recommend Buying the Dip

Despite a drop in Micron Technology stock and a surprising margin outlook, analysts suggest that it is a good time to buy.

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Posted 9/27/2023, 9:19:00 PM

Micron Beats Earnings Estimates But Stock Falls As Outlook Remains Cautious Amid Industry Downturn

Micron's earnings and revenue topped analyst estimates but outlook was mixed
Net income fell 26% and revenue dropped 40% amid industry downturn
Lost adjusted $1.07 per share vs. expected loss of $1.15 per share
Revenue was $4.01 billion vs. $3.95 billion forecast
Forecasts adjusted loss of $1.07 per share on revenue of $4.4 billion next quarter
CEO says well-positioned for market recovery in 2024 driven by AI demand
MU stock fell over 5% on news as pricing stabilizes slowly

investors.com

Relevant topic timeline:

8/20/2023

1 AI Semiconductor Stock Emerging as a New Leader in Industrial Automation

9/18/2023

Cramer: Micron Could Spark Gains for Semiconductor Stocks Like AMD and Nvidia

9/18/2023

Micron Technology Stock Upgraded Ahead of Earnings Report Next Week

Micron Technology stock rises after Deutsche Bank analyst upgrades the stock due to improving demand ahead of earnings.

9/21/2023

Micron Offers AI Hardware Diversification as Nvidia Stock Soars

9/24/2023