Micron Technology will publish economic report today
2022.12.21 12:23
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Micron Technology will publish economic report today
Budrigannews.com – According to Citi analysts, Micron Technology (NASDAQ:) to fall short of expectations when it announces its fiscal first quarter 2023 results today after the market closes.
Given the DRAM failure, “we expect the company to report and guide below our estimates and Consensus; However, our reasons for being optimistic about Micron have not changed,” the analysts wrote, reiterating their Buy rating and $75 price target for the stock.
However, they also anticipate Micron “trading close to trough valuation” in 1Q23 as a result of capex and utilization reductions.
The analysts said that the “print is going to be ugly.” Due to deteriorating DRAM pricing, we anticipate Micron to report F1Q23 revenue of $4.25 billion below our estimate (down 36% QoQ) and Consensus of $4.14 billion below our estimate (down 38% QoQ).
The guide will be even worse, they added. They stated, “We expect Micron to guide F2Q23 sales below our estimate of $4.00 billion (down 6% quarter-over-quarter) and Consensus of $3.86 billion (down 8% quarter-over-quarter), with F2Q23 EPS guide below our estimate of ($0.30) and Cons of ($0.40).”
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“However, the bottom is here for the stock. The DRAM market should reach a bottom in the first quarter of 23 because Micron and Hynix are cutting back on capital expenditures and utilization rates.
