Micron Technology (NASDAQ: MU) shares endured a rough start to Friday, a day after CFO David Zinsner said that the semiconductor company's gross margins would suffer due to President Donald Trump's latest round of 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 September 24," Zinsner said. "We are working to gradually mitigate most of the impact from these tariffs over the next three to four quarters."
Micron also gave weak future guidance for revenue and earnings per share compared to what analysts had 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 company estimates future earnings per share of $2.95, plus or minus seven cents, which is lower than the $3.04 per share analysts expected.
Thursday, the company announced fourth-quarter revenues of $8.44 billion, up 38% compared with the same period last year; GAAP net income of $4.33 billion, or $3.56 per diluted share and operating cash flow of $5.16 billion, compared with $3.20 billion for the same period last year.
On a full-year basis, Micron reported revenues of $30.39 billion, up 50% compared with the prior fiscal year. GAAP net income was $14.14 billion, or $11.51 per diluted share. Operating cash flow was $17.40 billion, compared with $8.15 billion for the prior fiscal year.
Micron shares retreated $1.58, or 3.4%, to $44.48
