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Micron Q2 results fall short of estimates amid weaker demand

Published 03/28/2023, 04:04 PM
Updated 03/28/2023, 04:28 PM
© Reuters.

By Yasin Ebrahim

Investing.com -- Micron reported Tuesday fiscal second-quarter results that fell short of Wall Street estimates as demand was hurt by weakness in its PC and data-center end markets.

Micron Technology (NASDAQ:MU) shares rose about 1% in after-hours trading following the report.

Micron announced a loss o $1.91 a share on revenue of $3.69 billion. Analysts polled by Investing.com anticipated a loss of $0.66 a share on revenue of $3.74B.

The backdrop for chipmakers including Micron has been tough as weakness in PC, cloud and other end markets have hit demand at a time when customer inventories continued to be elevated.  

Looking ahead, the company said data center revenue had likely bottomed in fiscal Q2, and expects to see revenue growth in fiscal Q3. Overall demand for 2023, however, still faces headwinds as its customers work through elevated inventories and its end markets face a degradation in demand.

"Our expectations for calendar 2023 industry bit demand growth have moderated to approximately 5% in DRAM and low-teens percentage range in NAND, which are well below the expected long-term CAGR of mid-teens percentage range in DRAM and low 20s percentage range in NAND," it added.

For the fiscal third quarter, Micron sees a loss in a range of $1.51 to $1.65 on revenue of $3.70B, give or take 200M. Wall Street consensus had called for a loss of $0.92 on revenue of $3.8B.

Latest comments

Can try announce 'plan' job layoffs...,..shares will rise .......
yeah and obviously mention AI twenty times on the earnings call - that usually does the trick also
No mention of AI boosting demand
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