Why Micron Shares Are Trading Lower Today

Micron Technology Inc MU is trading lower Wednesday after the company announced its fiscal fourth quarter financial results and issued guidance below estimates. 

Micron reported adjusted quarterly earnings of $2.42 per share, which beat the estimate of $2.33 per share. The company reported quarterly revenue of $8.27 billion, which beat the estimate of $8.22 billion.

Micron expects fiscal first quarter earnings to be in a range of $2 per share to $2.20 per share versus the estimate of $2.61 per share. The company expects fiscal first quarter revenue to be in a range of $7.45 billion to $7.85 billion versus the estimate of $8.63 billion.

“In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend. The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth," said Sanjay Mehrotra, president and CEO of Micron.

Analyst Assessment: Multiple analyst firms lowered price targets on the stock following the company's financial results:

• Barclays analyst Blayne Curtis maintained Micron with an Overweight rating and lowered the price target from $110 to $87.
• Deutsche Bank analyst Sidney Ho maintained Micron with a Buy rating and lowered the price target from $95 to $90.
• Mizuho analyst Vijay Rakesh maintained Micron with a Buy rating and lowered the price target from $97 to $90.
• Susquehanna analyst Mehdi Hosseini maintained Micron with a Positive rating and lowered the price target from $135 to $125.
• UBS analyst Timothy Arcuri maintained Micron with a Buy rating and lowered the price target from $95 to $90.

MU Price Action: Micron has traded as high as $96.96 and as low as $46.50 over a 52-week period.

The stock was down 3.71% at $70.38 at time of publication.

Photo: courtesy of Micron.