Micron Technology Inc. shares have fallen more than 45% this year, but the memory-chip specialist is not out of the woods yet as demand for its core product continues to be weak.
Micron MU is scheduled to report fiscal first-quarter earnings after the close of markets on Wednesday. Analysts expect that this year’s unprecedented soft demand for memory chips will drift into 2023 and create another tough year for Micron, making any forecast proffered by executives a key part of the coming report.
While some analysts are starting to think the chip sector has already hit or will hit a bottom with a “soft landing” sometime in 2023, B of A Securities analyst Vivek Arya thinks the memory chip sector is heading for a “hard landing” in DRAM through early 2023. Arya has a neutral rating on Micron. What to expect Earnings: Of the 32 analysts surveyed by FactSet, Micron on average is expected to post an adjusted loss of 2 cents a share, down from an estimate of 95 cents a share in net income expected at the beginning of the quarter. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, calls for adjusted earnings of 7 cents a share.
Stock movement: Over Micron’s November-ending quarter, the stock ticked up 2%, while the PHLX Semiconductor Index SOX rose 5.6% over the same period, the S&P 500 index SPX rose 2,8%, versus a 2.9% decrease on the tech-heavy Nasdaq Composite Index COMP .