Why Semiconductor Manufacturing Company Micron Technology's Shares Are Taking A Hit Today

Micron Technology, Inc. MU shares are trading lower despite raising its first quarter of FY24 outlook, which surpassed estimates.

The company previously guided Q1 revenue of $4.4 billion (± $200 million). However, due to improved supply and demand balance and pricing, Micron now expects Q1 revenue to reach $4.7 billion. The street view stands at $4.46 billion.

The company expects the Non-GAAP gross margin to range (0.5%) to 0.0%; the prior outlook was (4%) ± 2%.

Meanwhile, the company expects non-GAAP operating expenses to be approximately $990 million versus the prior outlook of $900 million ± $15 million.

Non-GAAP EPS is expected to be approximately $(1.00); prior outlook was $(1.07) ± $0.07. The street view stands at $(0.99).

A boost in Micron’s forecasts was widely expected as demand for chips has picked up, according to a news report by Bloomberg. Shares gained 32.95% in the past year.

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Price Action: MU shares are trading lower by 3.73% to $74.62 on the last check Tuesday.

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