Micron Says Earnings Will Be Terrible. But a Turnaround Is on the Horizon.

That much is obvious from the company’s forecast for its fiscal fourth quarter ended Aug. 31, to be reported after the close of trading on Wednesday. Micron’s projection calls for a 41% revenue decline—and gross margin of negative10.5%. Those are some bad numbers. But here’s a better one: The stock is up 36% this year.

Micron has been hurt by weak demand for both DRAM and NAND memory chips in its core end markets—PCs, mobile phones, and data centers. The company previously projected calendar 2023 bit demand growth of low-to-mid single digits, in percentage terms, for DRAM, and high single digits for NAND, below the company’s forecast for long-term growth of midteens for DRAM and low 20s for NAND.

Newsletter Sign-up In response to softer demand, Micron has been slashing spending. The company last quarter projected fiscal 2023 capital expenditure of $7 billion, down more than 40% from the previous year, with wafer fabrication equipment spending down more than 50%. Micron said last quarter that it continues to see fiscal year 2024 wafer fab equipment spending down year-over-year from fiscal 2023 levels.

Raymond James analyst Srini Pajjuri expects August quarter results to match estimates, with November quarter guidance slightly above consensus.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Micron earnings preview: How much has AI benefited the memory-chip maker?Micron appears to be turning the corner after the memory-chip maker called the bottom in a tough market just as AI caught fire this year.
Source: MarketWatch - 🏆 3. / 97 Read more »

Micron earnings on deck, with focus on China ban, AI boost to DRAM salesA rebound in DRAM pricing, linked to AI demand, could partly offset the impact of China’s retaliatory ban on Micron chip sales.
Source: startelegram - 🏆 248. / 63 Read more »

Stocks higher, Senate shutdown progress, Costco, Microsoft, MicronStocks higher, Senate shutdown progress, Costco, Microsoft, Micron
Source: startelegram - 🏆 248. / 63 Read more »

Costco earnings, United Natural Foods, new home sales: 3 things to watch By Investing.comCostco earnings, United Natural Foods, new home sales: 3 things to watch
Source: Investingcom - 🏆 450. / 53 Read more »

Costco earnings on deck with big ticket demand, spending outlook in focusCostco Wholesale COST shares edged lower in pre-market trading ahead of the bulk discount retailer’s fourth quarter earnings slated for after the closing bell. Analysts expect Costco to post a bottom line of $4.79 per share, a 14% increase from the same period last year, with revenues ...
Source: startelegram - 🏆 248. / 63 Read more »