Investing.com -- Micron Technology Inc (NASDAQ:MU) reported better-than-expected fiscal third-quarter results and guidance for the current quarter that topped Wall Street estimates as the chipmaker said the bottom was in for memory-chip revenue.
Micron shares rose about 4% in pre-market Thursday trading.
Micron announced an adjusted loss of $1.43 a diluted share on revenue of $3.75 billion. Analysts polled by Investing.com anticipated a loss of $1.59 a share on revenue of $3.67B.
Looking ahead to fiscal Q4, Micron sees an adjusted loss of $1.19 per diluted share, give or take $0.07, and revenue of $3.90B, give or take 200M. Wall Street consensus had called for a loss of $1.06 on revenue of $3.89B.
The better-than-expected outlook comes as the chipmaker warned that China's recent Cyberspace Administration of China decision was a "significant headwind" impacting its outlook and slowing its recovery.
The expected impact from China's decision, however, was overshadowed by remarks that point to a bottom in memory demand.
"We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored," the company said.
Wall Street analysts mostly reflected positively on Micron's results and outlook. Citi analysts said while the results were "ugly," which was expected, many signs are pointing that recovery is coming.
"We continue to believe the worst of the memory cycle is behind us and a recovery is in sight," they said in a note.
Piper Sandler analysts raised the rating to Neutral with a price target of $70 per share.
"Our upgrade is primarily based on improving end-market inventory conditions with a potential improvement in volumes and pricing in 2H23... We firmly believe that the stock has already bottomed, and in short order of six months or so we expect tailwinds to be behind Micron from the catalysts mentioned above," they wrote.
Additional reporting by Senad Karaahmetovic