Micron shares fell lower after the company report Q4 earnings after the bell. Shares of Micron Technology Inc. fell lower by -6.53% after initially rising 4% in after hours trading.
Micron Technology inc. is in semi-conductor sector. Micron ($MU) reported quarterly earnings of $3.53 per share, beating the Zacks Consensus Estimate of $3.32 per share. This compares to earnings of $2.02 per share a year ago. The company reported revenues of $8.44 billion for the quarter ended August 2018, surpassing the Zacks Consensus Estimate by 2.30%. This compares to year-ago revenues of $6.14 billion. Micron has topped consensus revenue estimates four times over the last four quarters.
The Shares traded lower when Micron Chief Financial Officer Dave Zinsner said margins will be decrease as a result of the tariffs on Chinese imports.
“Our gross margins will also be impacted in the near term by the announced 10% tariff on $200 billion of imports from China, which will go into effect on Sept. 24,” he said Thursday. “We are working to gradually mitigate most of the impact from these tariffs over the next three to four quarters.”
The company reported fiscal fourth-quarter net income of $4.33 billion, or $3.56 a share, compared with $2.37 billion, or $1.99 a share, in the year-ago period. After adjusting for stock-based compensation and other effects, Micron claimed earnings of $3.53 a share. Micron was expected to post adjusted earnings of $3.33 a share, according to analysts surveyed by FactSet, after Micron forecast $3.23 to $3.37 a share.
Micron gave weak future guidance for revenue and earnings per share compared to what analysts estimated. The company expects future quarterly revenue between $7.9 billion and $8.3 billion, while analysts had estimated $8.45 billion in revenue.
The Stock is down 35.30% from its 52 week highs following Q4 earnings with a share price of $43.05.