Micron Technology (MU) reported third quarter results that topped Wall Street estimates on both the top and bottom lines. The chip company reported adjusted earnings per share of $0.62 versus the estimate of $0.50. Adjusted revenue of $6.81 billion topped the estimated $6.67 billion.

For the fourth quarter, Micron expects to report adjusted earnings per share in a range of $1.00-$1.16. The Street was expecting $1.02. The company sees adjusted revenue in a range of $7.4 billion-$7.8 billion. Analysts had been expecting $7.58 billion.

Yahoo Finance's Josh Lipton and Julie Hyman break down the report.

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This post was written by Stephanie Mikulich.

Video Transcript

We're taking a look now at shares of Mike R right?

As their third quarter results hit the wire.

Let's break down those numbers.

They're looking for Q three A just eps to report of 62 cents.

That's versus expectations of 50 cents.

And Q three revenue clocks in at 6.81 billion versus expectations of 6.67 billion.

So beats there on the bottom and the top.

Let's look ahead now to what they're guided for, for Q four, they say to look for eps between a dollar to a dollar 16, consensus was at 102 revenue.

They say they give a range here.

They're looking for between 7.4 to 7.8 billion.

So at the mid point that is basically in line with what the street was looking for.

Julie, the street was at 7.58 billion, at least initially here, you can see the shares are down in the after hours.

I'm trying to figure out why the shares are down in the, I don't know, you know, I I'm looking too, I mean, I wonder if in part, I, if, if maybe the Q four guidance.

I I it is basically in line at the midpoint, maybe that wasn't enough given especially the move the stock has made.

I mean, it was up more than 60% just this year heading into the print.

It was up about 100 and 20% of the past 12 months.

But I'm looking for other data points as well as see what could explain that.

Yeah, I mean, if you look at the midpoint of that guidance, it still seems to be above what folks are looking for.

I'm looking in the statement here, by the way, the stock is up about what 60 some percent a year to date here.

And a lot of the thesis on Miron which has been, you know, we we talk about semiconductors all the time.

There are a lot of different kinds of semiconductor makers.

As we have learned, there's in video with the very advanced chips.

Miron is a memory chip maker which has been a, a part of the chip business is particularly cyclical, particularly commoditized what the thesis has been with my and what might be changing is that it is now making a bit more of a more advanced chip within memory that it's called it high bandwidth memory chip.

And that's something that is now in higher demand related to A I.

And indeed Santra who is the president and CEO saying in the statement work excited about the expanding A I driven opportunities ahead and he says, are well positioned to deliver a substantial revenue record in fiscal 2025 which I think is interesting there.

So we'll keep digging in here and see exactly what's going on.

I just wonder what, what's going on, at least initially here is, is go back to what the stock did into the print.

The expectations were just out of this world heading in.

It's true.