Semiconductor maker Micron Know-how (NASDAQ:MU) is scheduled to report its outcomes for the primary quarter of Fiscal 2023 after the market closes on December 21. The corporate is anticipated to publish an adjusted loss within the fiscal first quarter as a consequence of a decline within the demand for reminiscence chips amid a difficult macro backdrop.
Analysts’ Estimates Replicate Weak point
Final month, Micron spooked traders when it introduced that it could minimize down its DRAM and NAND wafer manufacturing by about 20% in comparison with This fall FY22, citing tough market situations. It expects bit provide to fall for DRAM within the calendar yr 2023 and develop within the single-digit share vary for NAND chips. Moreover, Micron cautioned that the outlook for the calendar yr 2023 has weakened.
In the meantime, analysts count on Micron’s Fiscal Q1 income to say no 46% year-over-year to $4.1 billion. They mission an adjusted loss per share of $0.02 in Q1 FY23 in comparison with an adjusted EPS of $2.16 within the prior-year quarter.
Is Micron a Purchase, Promote, or Maintain?
Forward of the quarterly outcomes, Deutsche Financial institution analyst Sidney Ho downgraded Micron inventory to a Maintain from Purchase and lowered the value goal to $55 from $60. Ho expects the present downturn within the reminiscence market to last more and be extra intense than what was beforehand anticipated.
Ho highlighted that the weak point within the shopper PC and smartphone markets has now prolonged to the enterprise market. The analyst additionally famous that the demand within the cloud finish market has additionally began to disappoint. Ho expects Micron to generate web losses in the complete calendar yr 2023 as a result of demand droop and elevated stock ranges.
Total, Ho moved to the sidelines as he believes that the risk-reward for Micron inventory seems to be balanced on the present ranges and prefers to attend for a greater entry stage.
Wall Avenue is cautiously optimistic about Micron inventory, with a Average Purchase consensus score primarily based on 16 Buys, 5 Holds, and two Sells. The typical Micron inventory value goal of $64 implies 23.7% upside potential from present ranges. Shares have declined over 44% year-to-date.
Conclusion
Analysts count on Micron’s income and earnings to replicate the autumn in demand for reminiscence chips amid deteriorating macro situations. Traders will search for extra data on how the corporate intends to handle stock points and supply-demand dynamics within the upcoming quarters.
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