Micron Stock Is Moving Lower Thursday: What's Driving The Action?

Micron Technology Inc MU shares are trading lower Thursday after the company reported mixed earnings results and issued weak guidance for the current quarter. Multiple analysts also lowered price targets following the print.

• Q1 Revenue: $8.71 billion, versus estimates of $8.72 billion

• Q1 Adjusted EPS: $1.79, versus estimates of $1.76

Total revenue was up from $4.73 billion on a year-over-year basis. Operating cash flow was $3.24 billion and adjusted free cash flow was $112 million in the quarter, down from $323 million in the prior quarter. The company ended the quarter with $8.75 billion in cash, marketable investments and restricted cash.

"Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time," said Sanjay Mehrotra, president and CEO of Micron.

"While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders."

Micron’s board also declared a quarterly cash dividend of $0.115 per share, payable on Jan. 15 to shareholders of record as of Dec. 30.

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Q2 Guidance: Micron sees second-quarter revenue of $7.9 billion, plus or minus $200 million, versus estimates of $9 billion. The company expects second-quarter adjusted earnings of $1.43 per share, plus or minus 10 cents per share, versus estimates of $1.92 per share.

Analyst Changes:

• Needham analyst Quinn Bolton maintained Micron with a Buy and lowered the price target from $140 to $120.
• Baird analyst Tristan Gerra maintained Micron with an Outperform and lowered the price target from $150 to $130.
• Rosenblatt analyst Hans Mosesmann maintained Micron with a Buy and kept a price target of $250.
• Wedbush analyst Matt Bryson maintained Micron with an Outperform and lowered the price target from $140 to $125.

MU Price Action: Micron shares were down 17.7% at $85.42 at the time of writing Thursday, according to Benzinga Pro.

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