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Micron Technology misses expectations, taking decisive actions to cut expenses

Published 22/12/2022, 08:28 am
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By Sam Boughedda

Micron Technology (NASDAQ:MU) shares edged lower after-hours Wednesday after the company posted its fiscal first-quarter earnings, which missed analyst consensus expectations.

The semiconductor manufacturing firm posted an adjusted loss per share of $0.04, wider than expectations of a $0.01 loss per share, while revenue came in at $4.09 billion, missing the consensus estimate of $4.15B.

In addition, revenue fell from $6.64B in the prior quarter and $7.69B for the same period last year.

At the time of writing, Micron shares have declined around 0.2% on the back of the report, after an almost 1% gain in the regular session. For the year to date, the stock is down 45%.

"Micron delivered fiscal first-quarter revenue and EPS within guidance ranges despite challenging conditions during the quarter," said Micron Technology President and CEO Sanjay Mehrotra. "Micron's strong technology, manufacturing, and financial position put us on solid footing to navigate the near-term environment."

The company said it's taking "decisive actions" to cut supply and expenses, and it expects improving customer inventories to enable higher revenue in the fiscal second half. It also believes it will deliver strong profitability once it gets past the current downturn.

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