Micron shares are getting squashed in pre-market trading after the company reported disappointing third quarter earnings on Thursday.
The maker of memory chips for computers posted forecasts for earnings that missed analysts’ estimates.
Micron said it’s expecting revenues for the next quarter of between $US3.45 and $US3.7 billion, below estimates for $US4.16 billion, according to Bloomberg.
Revenues and earnings fell quarter-over quarter. Micron’s sales of $US3.85 billion missed expectations for $US3.9 billion, while adjusted earnings per share came in at $US0.43, versus estimates for $US0.57.
In pre-market trading on Friday, shares of Micron were down 15%.
In Micron’s earnings statement, CEO Mark Durcan wrote (emphasis added,) “In the fiscal third quarter, Micron experienced market headwinds driven primarily by weakness in the PC sector. We remain focused on the long term as we continue to deploy advanced process technology to enable leading-edge products and drive manufacturing efficiency.”
David Einhorn’s Greenlight Capital owns the largest stake among hedge funders in the company with 33.5 million shares, according to Bloomberg.
Shares are down 31% year-to-date, and 24% over the last 12 months. The company had been one of the hottest stocks of the last couple years, rising more than 450% from the start of 2013 through the end of last year.