Micron Technology (NASDAQ: MU) stock fell more than 2% in pre-market trading on Friday, despite the company reporting second-quarter results that beat Wall Street expectations. In addition, the memory chip maker issued a better-than-expected outlook for the current quarter.
Micron reported revenue of $8.05 billion for the quarter, a 38% increase from $5.83 billion a year ago. This figure beat the consensus estimate of $7.91 billion. Adjusted earnings came in at $1.78 billion, or $1.56 per share, a significant improvement from $476 million, or 42 cents per share, a year earlier, also above estimates.
Sanjay Mehrotra, Chairman, President, and CEO, said,
“Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago.”
He added,
“We expect record quarterly revenue in fiscal Q3, with DRAM and NAND demand growth in both data center and consumer-oriented markets, and we are on track for record revenue and significantly improved profitability in fiscal 2025.”
Guidance: For the current quarter, Micron forecasts revenue between $8.6 billion and $9 billion, with adjusted earnings per share ranging from $1.47 to $1.67. In contrast, analysts had forecast revenue of $8.53 billion and adjusted EPS of $1.51 per share.
The company cautioned that its outlook does not account for potential new tariffs under U.S. President Donald Trump. Micron stated, “Given the uncertainty around tariff timing, nature, and implementation,” it excluded their impact from the forecast.
Wall Street remains bullish on Micron Technology (NASDAQ: MU). Mizuho Securities recently reaffirmed its Outperform rating on the stock with a $115.00 price target. Stifel analysts also maintained a Buy rating, setting a $130.00 target earlier this week.
