Micron Technology Inc (Nasdaq: MU) reported mixed fiscal 2022 fourth-quarter results. While revenues were just below expectations, earnings surpassed Wall Street estimates. Notably, the semiconductor chip manufacturer also issued extremely weak revenue and earnings guidance, citing sluggish demand in the consumer electronics sector. Following the results, the stock of Micron closed Friday’s trading session at $50.10, almost unchanged from its prior close.
Boise, Idaho-based Micron reported fourth-quarter revenues of $6.64 billion, a decrease of 19.70% from $8.27 billion in the similar quarter last year.
For the fourth quarter, which ended September 1, 2022, the company posted a net income of $1.49 billion, or $1.35 per share, compared with $2.72 billion, or $2.39 a share, in the quarter that ended September 2, 2021.
Excluding stock-based compensation and restructure and asset impairment charges, among others, the 4Q 2022 non-GAAP net income was $1.62 billion, or $1.45 per share, down from $2.78 billion, or $2.42 per share, in the 4Q 2021.
Analysts surveyed by Refinitiv had anticipated the company to post earnings of $1.30 per share on revenues of $6.68 billion.
Commenting on the results, Micron Technology President and CEO Sanjay Mehrotra said, “Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing to navigate the weakened near-term supply-demand environment.”
Capital expenditures and adjusted free cash flow were $3.58 billion and $196 million, respectively, for Q4 2022. Micron spent $784 million to repurchase roughly 13.20 million shares in the latest quarter. The company ended fiscal 2022 with cash, marketable investments, and restricted cash of $11.06 billion. Net cash stood at $4.15 billion.
The company’s board approved a quarterly cash dividend of $0.115 per share, payable on October 26, 2022.
Looking ahead, the company expects 1Q 2023 revenues (GAAP and non-GAAP) to be $4.25 billion (+/-$250 million). Furthermore, GAAP earnings are anticipated to be between a net loss of $0.09 per share and a profit of $0.10 per share. Adjusted earnings are forecast to be in the range of $0.04 to $0.10 per share.
Wall Street analysts currently expect earnings of $0.64 per share on revenues of $5.62 billion for the current quarter. The mixed quarterly results and weak Q1 guidance are expected to keep the stock price of Micron range-bound in the near term.
The historical price chart indicates that the stock of Micron is declining after facing resistance at 60. The next support is anticipated only in the next 45 days. Additionally, the stock is trading below its 50-day moving average while the MACD indicator is showing a negative reading. Therefore, we anticipate the stock to remain in a downtrend in the near term.
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