Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Micron Q2 results fall short of estimates amid weaker demand

Published 03/28/2023, 04:04 PM
Updated 03/28/2023, 04:28 PM
© Reuters.
MU
-

By Yasin Ebrahim

Investing.com -- Micron reported Tuesday fiscal second-quarter results that fell short of Wall Street estimates as demand was hurt by weakness in its PC and data-center end markets.

Micron Technology (NASDAQ:MU) shares rose about 1% in after-hours trading following the report.

Micron announced a loss o $1.91 a share on revenue of $3.69 billion. Analysts polled by Investing.com anticipated a loss of $0.66 a share on revenue of $3.74B.

The backdrop for chipmakers including Micron has been tough as weakness in PC, cloud and other end markets have hit demand at a time when customer inventories continued to be elevated.  

Looking ahead, the company said data center revenue had likely bottomed in fiscal Q2, and expects to see revenue growth in fiscal Q3. Overall demand for 2023, however, still faces headwinds as its customers work through elevated inventories and its end markets face a degradation in demand.

"Our expectations for calendar 2023 industry bit demand growth have moderated to approximately 5% in DRAM and low-teens percentage range in NAND, which are well below the expected long-term CAGR of mid-teens percentage range in DRAM and low 20s percentage range in NAND," it added.

For the fiscal third quarter, Micron sees a loss in a range of $1.51 to $1.65 on revenue of $3.70B, give or take 200M. Wall Street consensus had called for a loss of $0.92 on revenue of $3.8B.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.