Introduction
Micron Technology, a leading provider of memory and storage solutions, reported its fiscal second-quarter results on Tuesday, which fell short of Wall Street estimates due to weakness in the PC and data center end markets. In this article, we will discuss the details of the company’s Q2 earnings report and its outlook for the future.
Micron’s Q2 Results
Micron announced a loss of $1.91 a share on revenue of $3.69 billion for the fiscal second quarter. Analysts polled by Investing.com had anticipated a loss of $0.66 a share on revenue of $3.74B. The company’s Q2 results were impacted by weakness in PC and data-center end markets, which hurt demand.
Micron’s Shares Rise in After-Hours Trading
Despite the disappointing Q2 results, Micron Technology’s shares rose about 1% in after-hours trading following the report. This may be attributed to the fact that the company expects to see revenue growth in Q3, as data center revenue had likely bottomed in fiscal Q2.
Micron’s Outlook for the Future
Looking ahead, Micron expects overall demand for 2023 to face headwinds as its customers work through elevated inventories and its end markets face a degradation in demand. However, the company sees some positive signs as data center revenue is expected to grow in Q3 after bottoming in Q2.
Industry Bit Demand Growth Expectations
Micron’s 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. This indicates that the company is not expecting significant growth in the industry in the near future.
Fiscal Q3 Outlook
For the fiscal third quarter, Micron expects a loss in the range of $1.51 to $1.65 on revenue of $3.70B, give or take 200M. This is below the Wall Street consensus, which had called for a loss of $0.92 on revenue of $3.8B. The company’s outlook for Q3 is likely affected by the ongoing weakness in the PC and data center end markets.
Conclusion
Micron Technology reported disappointing Q2 results due to weakness in the PC and data center end markets. The company expects to see revenue growth in Q3, but overall demand for 2023 still faces headwinds as its customers work through elevated inventories and its end markets face a degradation in demand. Micron’s outlook for the future may be affected by the ongoing challenges faced by the industry as a whole.
