IPFS News Link • Stock Market
Micron Plunges After Catastrophic Guidance Confirms Worst Fears
• https://www.zerohedge.com, by Tyler DurdenThe problem is the guidance: it was catastrophic, and sent the stock sharply lower after hours.
First, a look at the just concluded third fiscal quarter:
Adjusted revenue $8.64 billion, +16% y/y, meeting the estimate $8.64 billion (this was the smallest increase in more than a year).
Adjusted EPS $2.59 vs. $1.88 y/y, beating the estimate $2.45
Adjusted gross margin 47.4% vs. 42.9% y/y, missing the estimate 47.9%
Cash flow from operations $3.84 billion, +7.8% y/y, missing estimate $4.42 billion
But while the historical numbers may have been good, the guidance was an absolute disaster, disappointing on the top line, the bottom line and margin - The company now sees:
Adjusted revenue $6.8 billion to $7.6 billion, missing the consensus estimate of $9.14 billion by about $2 billion!
Adjusted EPS $1.43 to $1.83, missing the estimate $2.57 by about 40%!
Adjusted gross margin 41% to 44%, wildly missing the estimate 47.9%, and confirming that margin pressure is here and is real.