Shares of Micron (MU) are falling after the company reported “solid” fourth-quarter results, but missed expectations for its Q1 guidance and company executives said U.S. tariffs on China goods would impact its financial results for as much as one year.

EARNINGS AND GUIDANCE: On Thursday after the market close, Micron reported Q4 earnings per share of $3.53 on revenue of $8.44B, which compared to analyst estimates of $3.34 and $8.25B, respectively. Micron also guided to Q1 EPS of $2.95, plus or minus 7c, on revenue in the range of $7.9B-$8.3B. This compares to analyst estimates of $3.06 and $8.44B, respectively. The company said on its earnings conference call that its gross margins will be impacted in the near term by the announced 10% tariff on $200B of imports from China, which will go into effect on September 24. CFO David Zinsner commented that “Clearly, tariffs are impacting us, probably to the tune of 50 to 100 basis points…We are working on steps to mitigate that. That obviously takes some time.” “We are working to gradually mitigate most of the impact from these tariffs over the next three to four quarters”, Micron added.