were down in late Tuesday trading after the company beat expectations for quarterly earnings but failed to impress Wall Street with its outlook.
The memory maker reported fourth quarter net income of $ 2.72 billion, equivalent to $ 2.39 per share, compared to net income of $ 988 million, or 87 cents per share, for the same period last year. Adjusted for share-based payments, among other things, earnings per share were $ 2.42. Revenue grew 37% to $ 8.27 billion.
The consensus estimate for adjusted earnings was $ 2.33 per share on sales of $ 8.2 billion.
Micron (ticker: MU) said it expects first quarter earnings of about $ 2 per share on revenue of about $ 7.65 billion. Analysts had forecast a profit of 2.53 US dollars and a turnover of 8.54 billion US dollars.
In pre-market trading, the share lost 3.4%.
Micron CEO Sanjay Mehrotra said in prepared remarks that demand for memory will be strong in 2022 and will increase among the “medium to high teens”. Flash memory, which Micron also makes, will grow by about 30%, he said. The company expects a “healthy balance between supply and demand in the industry” and strong profitability next year.
“Industry trends such as the widespread integration of artificial intelligence into all of computing, the proliferation of the intelligent edge, the continued growth of data centers and the provision of 5G networks are creating new and expanding opportunities for Micron,” said Mehrotra.
But the strong demand was not enough to reassure investors.
Semiconductors of all kinds have been in short supply, which has resulted in investors expecting above-average returns for companies in the industry. Since chip companies should basically be able to sell anything they can produce, investors have expected companies to report a healthy profit hit, followed by a forecast that also exceeds expectations.
Some research analysts had started lowering expectations for Tuesday’s quarterly report. As Barrons On Monday, Citi Research analyst Christopher Danely said he remains bullish on the company but expects memory prices to fall in the coming months. Cheaper memory could have an impact on Micron’s profit margins, though Danely expects prices to rebound in the second half of next year.
Micron said it plans to invest $ 11 billion to $ 12 billion in fiscal 2022. The company also said it plans to pay out its first dividend payment of 10 cents per share to shareholders of record next month next month.
Micron’s shares are down 2.8% this year. the
PHLX semiconductor index,
, or SOX, is up 19% yoy, while the
Index is up 16%.