were down late in Tuesday after the company beat expectations for its quarterly earnings, but failed to impress Wall Street with its outlook.
The memory maker published in the fourth quarter of the fiscal year net income of $ 2.72 billion, or $ 2.39 per share, compared with net income of $ 988 million, or 87 cents per share, in the prior year period. Adjusted for stock-based compensation, among others, earnings were $ 2.42 per share. Revenue increased 37% to $ 8.27 billion.
The consensus estimate for adjusted earnings was $ 2.33 per share on revenue of $ 8.2 billion.
Micron (ticker: MU) said he expected first quarter tax profit of about $ 2 per share, on revenue of about $ 7.65 billion. Analysts forecast profit of $ 2.53 and revenue of $ 8.54 billion.
Shares fell 4.1% after-hours trading.
Micron chief executive Sanjay Mehrotra said in prepared remarks that demand for memory in 2022 is high and will increase in “middle to high teens.” Flash storage, which Micron also manufactures, will increase by about 30%, he said. The company expects a “healthy industry supply-demand balance” and strong profitability next year.
“Industry trends such as the wide integration of artificial intelligence into all computations, the proliferation of smart edge, continued growth of data centers and 5G network deployments create new and expanding opportunities for Micron. ”Mehrotra said.
But strong demand was not enough to appease investors.
Semiconductors of all kinds are scarce, which has led investors to expect outsized returns from companies in the industry. Because chip companies should be able to sell virtually anything they are capable of producing, investors expect companies to report healthy earnings growth, followed by forecasts that also exceed expectations. expectations.
Some research analysts had started lowering expectations ahead of Tuesday’s quarterly report. As Barron Citi Research analyst Christopher Danely noted on Monday said he remained bullish on the company but expects memory prices to fall in the coming months. Cheaper memory could impact Micron’s profit margins, although Danely expects prices to rebound in the second half of next year.
Micron said it expects $ 11 billion to $ 12 billion in capital spending in fiscal 2022. The company also said it plans to pay its first dividend of 10 cents per share next month to registered shareholders. on October 1.
Micron shares are down 2.8% this year. The
PHLX semiconductor index,
or SOX, grew by 19% over the year, while the
the index is up 16%.