Micron Technology (MU) Q2 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/03/27 2:21 am EDT
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Memory chips maker Micron (NYSE:MU) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter Micron Technology reported revenues of $4.09 billion, down 46.9% year on year, missing analyst expectations by 1.39%. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.

Is Micron Technology buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Micron Technology's revenue to decline 52.3% year on year to $3.71 billion, a significant deceleration on the 24.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.85 per share.

Micron Technology Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing twelve downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Micron Technology's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Broadcom delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.21% and Photronics reported revenues up 11.2% year on year, exceeding estimates by 5.02%. Both companies (Broadcom and Photronics) traded flat on the results. Read our full analysis of Broadcom's results here and Photronics's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 2.1% over the last month. Micron Technology is up 5.92% during the same time, and is heading into the earnings with analyst price target of $66.1, compared to share price of $61.33.

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The author has no position in any of the stocks mentioned.