Shares of Micron Technology (MU) are down 5% after the memory chip maker reported weak financial results that missed Wall Street forecasts.
For its fiscal fourth quarter ended August 31, Micron announced revenue of $4.01 billion U.S., down 40% from a year earlier, and a net loss of $1.31 U.S. per share.
For the full fiscal year, Micron posted revenue of $15.5 billion U.S., down 49% from a year earlier, and a net loss of $4.45 U.S. per share. That compares with a profit of $7.75 U.S. a share in the previous year.
The results missed Wall Street forecasts across the board.
Looking ahead, Micron forecasts revenue of $4.4 billion U.S. which is above analysts’ consensus forecast of $4.2 billion U.S.
The company expects a loss for the current quarter of $1.07 U.S. a share, which is worse than consensus forecasts for a loss of $1.04 U.S. per share.
Micron has been struggling with weak demand for both its DRAM and NAND memory chips in its core markets that are focused on personal computers (PCs), mobile phones, and data centres.
In response to the weakening demand, Micron has cut its spending. Capital expenditures for the full fiscal year totaled $7 billion U.S., down 40% from the previous year.
The company is forecasting a rebound in PC and smartphone sales in 2024, which should help sales of its memory chips.
Micron’s stock has increased 34% over the last 12 months and currently trades at $68.21 U.S. per share.