Micron Technology CEO Sanjay Mehrotra informed CNBC on Wednesday the reminiscence chip maker felt assured about its enterprise general, regardless of its current-quarter income projections coming in under Wall Street estimates.
In an interview with Jim Cramer on “Mad Money,” Mehrotra mentioned the lower-than-expected gross sales guidance is a results of exterior components that its computer-making customers are going through.
“PC end user demand is strong, but some of the PC customers are not able to fulfil their demand because their not getting sufficient all components that are needed to build the PCs,” Mehrotra informed Cramer. “As a result, some of the demand to us is impacted from them as they balance some of their inventory considerations.”
After the shut Tuesday, Micron reported fiscal fourth-quarter income and earnings per share that topped Wall Street estimates. But the corporate’s fiscal first-quarter income forecast of $7.65 billion, plus or minus $200 million, was decrease than $8.57 billion analysts projected on common, according to Refinitiv.
Shares of Micron slid as traders digested the information, initially falling nearly 4% in after-hours buying and selling. The inventory’s declines went on to reasonable, closing down 2 % throughout common buying and selling Wednesday.
“This we look at it as an air pocket in the PC segment,” mentioned Mehrotra, who’s served as CEO of Micron for four years. “Outside of that, across other markets, the demand drivers are strong.” He added, “We are also projecting that our fiscal year 2022, which has just started, will be a record year for the company with solid profitability.”
In addition to PCs, Micron makes reminiscence chips that are also utilized in information facilities, smartphones and autos.
Micron’s scenario with its PC customers additional illustrates the wide-ranging results of supply-chain bottlenecks and components shortages which have cropped up in the course of the Covid pandemic. On Tuesday, for instance, speaker maker Sonos CEO Patrick Spence informed Cramer: “In my 23 years in tech, I haven’t seen a period as challenged as this.”