Micron shares plunge on weak second quarter guidance

micron Shares plunged 13% in extended trading on Wednesday after the chipmaker gave weak second-quarter guidance despite a profit decline in the most recent period.

Here’s how the company performed compared to analyst expectations surveyed by LSEG:

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

• revenue: $8.71 billion versus expected $8.71 billion

For the second quarter, Micron expects revenue of $7.9 billion, plus or minus $200 million, and adjusted earnings per share of $1.43, plus or minus 10 cents. According to LSEG, analysts expected revenue of $8.98 billion and earnings per share of $1.91.

Shares of the computer memory and data storage company rose 22% year to date since the market closed, underperforming the Nasdaq’s 29% rise. In the earnings report, Micron highlighted data centers and artificial intelligence projects with Nvidia processors as growth areas.

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

REGARD: Micron shares continue to slip from guidance