Micron Could Report Largest Ever Loss in Q2

Micron Know-how Inc. (MU), among the many 5 largest semiconductor firms by income, in all probability will report its largest-ever loss within the second quarter of FY 2023 on plunging income amid smooth shopper spending and stock changes.

Micron is anticipated to report a web lack of nearly $1.2 billion, its second consecutive quarterly loss. Earnings per share (EPS) is more likely to be -$1.06, having swung from $2.00 within the prior-year quarter, in response to estimates compiled by Seen Alpha. Predicted income of $3.7 billion is half of what it was a 12 months in the past. Micron stories outcomes after markets shut on March 28.

The pc reminiscence firm’s monetary struggles underscore its issue navigating a weakened shopper financial system, excessive inflation, and stock troubles. Micron is anticipated to report a write-down on stock amid industry-wide part and provide constraints within the industrial market. This led information middle operators, historically main prospects, to restrict reminiscence and storage purchases.

Citi Analysis analyst Christopher Danely says Micron may very well be promoting reminiscence chips for lower than it prices to make them, leading to unfavourable gross margins for the primary time in about 15 years. Danely additionally expects a write-down of stock “within the vary of a billion.”

Micron shares have misplaced 1 / 4 of their worth within the final 12 months, in contrast with a ten% decline within the S&P 500 Data Know-how Sector Index.