By Mackenzie Tatananni
Micron Technology stock tumbled on Wednesday after the company's chief financial officer said there would be "no change or update" to the company' second-quarter outlook and signaled a deterioration in margins for the third quarter.
Speaking at the Wolfe Research Auto, Auto Tech and Semiconductor Conference, CFO Mark Murphy said there would be no adjustments to the guidance issued on Dec. 18.
For the second quarter, Micron forecast adjusted earnings in the range of $1.33 to $1.53 a share. The latest consensus call among analysts surveyed by FactSet is for $1.44 a share.
Management now expects third-quarter gross margins to be lower "by a few hundred basis points sequentially," Murphy added, citing changes in both Micron's mix of customers and industry conditions.
The company told investors to expect second-quarter gross margins between 37.5% and 39.5%.
Shares of the computer memory manufacturer were down 3.3% to $90.87, on pace for the largest same-day percentage decrease since Jan. 27, when the company announced the repurchase of convertible debt.
Industry conditions should support improved margins beyond the fiscal third quarter, Murphy said. He pointed to factors including improvements in smartphone inventory levels, growth in data center demand, and supply reductions in NAND memory, which should "support the market over time."
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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(END) Dow Jones Newswires
February 12, 2025 10:48 ET (15:48 GMT)
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