Micron shares plunge on weak second-quarter guidance

Micron shares plunged 13% in extended trading on Wednesday after the chipmaker issued weak second-quarter guidance despite an earnings beat for the latest period.

Here’s how the company did compared to analysts’ expectations surveyed by LSEG:

• Earnings per share: $1.79, adjusted vs. $1.75 expected

• Revenue: $8.71 billion vs. $8.71 billion expected

For the second quarter, Micron said it expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. Analysts were expecting revenue of $8.98 billion and EPS of $1.91, according to LSEG.

The computer memory and storage company has seen its shares climb 22% year to date as of market close, trailing the Nasdaq’s 29% gain. In the earnings report, Micron highlighted data centers and artificial intelligence ventures with Nvidia’s processors as growth areas.

“While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year, said CEO Sanjay Mehrotra in a press release. “We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”

WATCH: Micron shares continue to slip on guidance