Why Micron Technology Stock Is Trading Lower In Tuesday's After-Hours Session

Shares of Micron Technology Inc. MU were trading sharply lower following the release of its Q4 earnings report and disappointing forward guidance for Q1 which missed estimates on both EPS and sales.

The company issued lower than expected guidance with adjusted EPS in the range of $2.00 to $2.20 versus the $2.61 analyst consensus and with sales in the range of $7.45 billion to $7.85 billion versus the $8.63 billion analyst estimates.

Micron Technology CEO Sanjay Mehrotra highlighted an outstanding fourth quarter execution which successfully encompassed several key milestones as the semiconductor company “established DRAM and NAND technology leadership, drove records across multiple markets, and initiated a quarterly dividend.”

A few highlights from fiscal year 2021 include a year-over-year revenue increase from $21.44 billion to $27.71 billion as well as operating cash flow at $12.47 billion from $8.31 billion in the prior year.

The company reported fourth quarter adjusted EPS of $2.42 beating the $2.33 estimate and sales of $8.27 billion, beating the $8.22 billion estimate.

Micron Technology Inc. is an industry leader in innovative memory and storage solutions with a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through both their Micron and Crucial brands. The firm’s products are tailored towards PCs, data centers, smartphones, game consoles, automotives, and other computing devices.

At the time of publication, shares of Micron Technology Inc. were trading 3.47% lower on the day at $70.56, extending losses on the day following the 2.77% downturn during market hours. The stock has a 52-week low of $46.50 and a 52-week high of $96.96.

Other firms within the semiconductor space are also trading lower in tandem to Micron Technology’s earnings results including Western Digital Corporation WDC and Seagate Technology Holdings STX which are down 1.75% and 2.00% respectively in the after hours session.