Memory chips maker Micron (NYSE:MU) will be reporting results tomorrow after market hours. Here's what to expect.
Last quarter Micron Technology reported revenues of $3.75 billion, down 56.6% year on year, beating analyst revenue expectations by 2.05%. It was a mixed quarter for the company, with revenue and EPS outperforming Wall Street's expectations. On the other hand, profitability metrics deteriorated. The company's CEO did say that "the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored."
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This quarter analysts are expecting Micron Technology's revenue to decline 40.9% year on year to $3.93 billion, a further deceleration on the 19.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.18 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.
With Micron Technology being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductors stocks, but the whole sector has been hit hard on fears of higher interest rates, with stocks down on average 5.13% over the last month. Micron Technology is up 4.18% during the same time, and is heading into the earnings with analysts' average price target of $79.85, compared to share price of $68.04.
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The author has no position in any of the stocks mentioned.