Micron Expertise Inc. MU launched fiscal fourth-quarter outcomes after the closing bell on Thursday. The Boise, Idaho-based firm reported downbeat revenues of $6.64 billion and adjusted earnings of $1.45 per share, forward of the consensus estimate.
Listed here are the important thing takeaways, in line with six analysts:
“The outlook was materially worse than our below-consensus expectation,” says analyst Joseph Moore, who maintained an Underweight score.
The fourth quarter was difficult for Micron Expertise, Moore stated, lowering the worth goal from $56 to $49.
“The corporate will hit the brakes on provide, and is mostly executing properly, however we see oversupply persisting via CY23,” he added.
BMO Capital Markets
Analyst Ambrish Srivastava reiterated an Outperform score, whereas lowering the worth goal from $80 to $70.
“FCF goes to be a a lot worse quantity for F1Q vs. our mannequin, at a burn of $1.5B,” Srivastava wrote in a observe. “On the optimistic facet, Micron is responding proactively and way more aggressively to rein in provide,” he added.
Analyst Vijay Rakesh reaffirmed a Impartial score, whereas lowering the worth goal from $56 to $52.
“We’ve famous issues remaining round PC and Cell weak point in addition to potential for Server softness,” Rakesh stated. “Until YMTC (Yangtze Reminiscence Applied sciences Co) turns into utterly restricted, NAND could possibly be a major headwind in 2023E, with YMTC NAND pricing 15-25% beneath NAND from different OEMs,” he additional wrote.
Analyst Hans Mosesmann maintained a Purchase score and a value goal of $100.
“Micron’s outlook off a pre-announced Aug quarter was for an enormous sequential decline in gross sales (down 36% q/q), pushed by a mixture of finish demand weak point (PC and Smartphone largely), and a much bigger than anticipated want by clients in all market segments to cut back inventories,” Mosesmann stated.
“For the November and February quarters, the income dynamic is each models (bits) and ASP pushed,” he added.
Analyst Rajvindra Gill reiterated a Purchase score, whereas lowering the worth goal from $64 to $60.
“Stock changes throughout all finish markets drove a large 4QFY22 top-line miss ($6.6BN vs. $7.2BN information) and even greater 1QFY23 information down ($4.25BN vs. the road’s $5.7BN),” Gill wrote in a observe. “Issues of a worldwide financial slowdown have firms tightening their belts, and the still-cyclical reminiscence business is feeling the sting,” the analyst added. “Subsequent 12 months could possibly be the mirror picture of this 12 months.”
KeyBanc Capital Markets
Analyst John Vinh reaffirmed an Obese score and a value goal of $70.
Micron Expertise expects the oversupply challenges to persist via the primary half of fiscal 2023, with a restoration anticipated within the second half, Vinh stated. “We’re decreasing estimates and stay OW, as we see favorable danger/reward and compelling LT secular developments for MU,” he added.
MU Worth Motion: Shares of Micron Expertise had risen by 3.10% to $51.56 on the time of publication Monday.