Micron quarterly sales come up short of analyst expectations

Micron Technology Inc. MU, +0.68% reported quarterly sales Tuesday afternoon that failed to meet expectations that were already diminished by a slowdown in the memory-chip business. Shares dropped about 1% in after-hours trading immediately following the report. Micron reported profit of $3.29 billion, or $2.81 a share, on revenue of $7.91 billion, up from $6.8 billion a year ago. After adjustments for stock compensation and other effects, the chip maker reported earnings of $2.97 a share, up from $2.45 a share a year ago. Analysts on average had expected adjusted earnings of $2.95 a share on revenue of $8 billion. "Despite weak near-term industry supply-demand dynamics entering calendar 2019, Micron is well-positioned to deliver healthy profitability throughout the year," Chief Executive Sanjay Mehrotra said in Tuesday’s announcement. "We remain bullish on the long-term secular growth trends driving the memory and storage industry." Micron did not provide a forecast for the current quarter in its news release but is expected to give that information on a conference call later. Micron’s stock gained 0.7% in Tuesday’s regular session but has declined 17.1% so far this year, as the S&P 500 index SPX, +0.01% has dropped 4.8%.

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