MU - Micron Q3 results: 'memory industry has passed its trough'
2023-06-28 17:49:54 ET
Micron Technology Inc ( NASDAQ: MU ) jumped 4.0% in extended hours after reporting better-than-expected sales for its third financial quarter.
Micron’s outlook for its fiscal Q4
The tech stock gained because the sales guidance was somewhat positive as well. In its current quarter, Micron expects $3.7 billion to $4.1 billion in revenue.
In comparison, analysts had called for $3.88 billion. CEO Sanjay Mehrotra said today in the earnings press release :
We believe the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored.
The memory chips maker, however, forecasts between $1.12 a share and $1.26 a share of loss in Q4 versus the Street at $1.07 per share. At writing, Micron stock is up roughly 40% year-to-date.
Notable figures in Micron Q3 results
- Lost $1.9 billion that translates to $1.73 a share
- Had $2.63 billion of net income instead a year ago
- Adjusted loss on a per-share basis came in at $1.43
- Revenue tanked just over 56% YoY to $3.75 billion
- Consensus was $1.61 a share on $3.65 billion revenue
Micron Technology Inc ended the quarter with about $9.3 billion of cash and equivalents. The Chief Executive added:
Longer-term, Micron’s leadership, product portfolio, and operational excellence continues to strengthen our competitive positioning across diverse growth markets, including AI.
China recently banned Micron chips
Last month, China cited a security threat and banned certain companies from buying Micron chips as Invezz reported here . According to CEO Mehrotra:
The recent Cyberspace Administration of China decision is a significant headwind that is impacting our outlook and slowing our recovery.
Earlier this month, a Bloomberg report said the Nasdaq-listed firm was close to announcing plans of spending at least $1.0 billion to set up a chip packaging factory in India.
Wall Street currently has a consensus “overweight” rating on Micron stock.
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