micron technology (mo) Stocks fell on Friday after the memory chip maker missed estimates with its guidance for the current quarter. MU shares led other semiconductor stocks lower in the report.
X
The Boise, Idaho-based company said late Thursday that it earned an adjusted $2.59 per share from sales of $8.64 billion in the third fiscal quarter ended June 2. Analysts polled by FactSet had expected Micron’s earnings of $2.43 per share on sales of $8.64 billion. On a year-over-year basis, Micron’s profits are up 38% while sales are up 16%.
For the current quarter, Micron forecast adjusted earnings of $1.63 per share on sales of $7.2 billion. Still, analysts expected earnings of $2.60 per share from sales of $9.15 billion in Micron’s fiscal fourth quarter. In the prior quarter last year, Micron earned $2.42 per share on sales of $8.27 billion.
“Recently, the industry demand environment has weakened, and we are taking measures to adjust our supply growth in fiscal year 2023,” said CEO Sanjay Mehrotra. new version. “We are confident of the long-term secular demand for memory and storage, and we are well positioned to deliver strong financial performance across cycles.”
MU’s stock has a subpar composite rating
Micron blamed its disappointing forecast on weak smartphone and PC sales as well as supply and demand issues in China. The company also pointed to the high levels of inventory of its customers of cloud computing.
On the stock market todayMU stock fell 3% to close at 53.65. During the regular session on Thursday, MU stock fell 1.3% to 55.28.
The Philadelphia Semiconductor Index, better known as SOX, fell 3.8% on Friday. SOX has the 30 largest semiconductor stocks trading in the US so far, and SOX is down 37.7%.
MU stock ranks fifth out of 10 stocks in IBD’s computer data storage industry group, according to IBD stock check. She has a subpar IBD Compound Classification Out of 46 out of 99.
The IBD composite rating is a combination of key fundamental and technical metrics to help investors gauge the strength of a stock. The best growth stocks have a composite rating of 90 or better.
Analysts cut price targets on MU . stock
At least 15 Wall Street analysts cut their target price for MU stock after the company’s earnings report. Of these analysts, 12 have buy ratings on Micron, two are neutral and the other has a sell rating.
In recent weeks, Wall Street analysts have been softening their expectations for semiconductor companies before that second quarter earnings season.
“Memory is usually the first shoe to fall in the (semiconductor) cycle,” Robert Mayer, president of Semiconductor Advisors, said in a newsletter. “Earnings season could get really, really ugly as more shoes can go down in the tech and chip sectors.”
Follow Patrick Seitz on Twitter at Tweet embed For more stories about consumer technology, software and semiconductor stocks.
You may also like:
Chip design companies upgrade while chip manufacturers are downgraded
Analyst said Qualcomm stock is rising with Apple’s 5G modem chip failure
PC Market Chatter Roils Chip, the makers of PC
Best growth stocks to buy and watch: see IBD stock listings updates
Find winning stocks using MarketSmith’s pattern recognition system and custom screens
“Twitteraholic. Total bacon fan. Explorer. Typical social media practitioner. Beer maven. Web aficionado.”