: Micron raised profit and revenue guidance, but stock takes a dive

Shares of Micron Technology Inc. MU took a 3.4% dive in premarket trading, even after the memory chip maker updated its fiscal first-quarter outlook, which included improved guidance for revenue and earnings per share. Just before the guidance update, the stock was down 0.5% in the premarket. The company said it now expects adjusted per-share losses of “approximately” $1.00, compared with previous guidance for a per-share loss of $1.07, plus-or-minus seven cents, and the FactSet loss consensus of $1.04. Revenue is now expected to be “approaching” $4.7 billion, compared with previous guidance of $4.4 billion plus-or-minus $200 million, and the FactSet consensus of $4.4 billion. Micron said the improved outlook is a result of “improved supply and demand balance and improved pricing.” The stock has run up 18.7% over the past three months through Monday, while the PHLX Semiconductor Index SOX has advanced 5.7% and the S&P 500 SPX has gained 2.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.