Micron Technology (MU.US) stock fell more than 4% before the opening bell, as weak revenue guidance overshadowed better than expected earnings figures.
- Company earned an adjusted $2.59 a share on sales of $8.64 billion. Wall Street expected earnings of $2.43 a share on sales of $8.64 billion. Micron earnings jumped 38% YoY while sales rose 16% YoY.
- Company forecasts smartphone sales to be meaningfully lower than previously expected for the rest of 2022, citing a reduction in consumer demand as rising inflation and recession squeeze consumers and corporate spending.
- “The industry demand environment has weakened,” CEO Sanjay Mehrotra said. This was confirmed by yesterday's U.S. personal spending data, which showed decreasing demand of durable goods, from autos to electronics.
- Micron forecasts that PC sales will fall nearly 10% this year, while smartphone shipments could plunge 6%, therefore the company plans to “moderate” its output growth accordingly.
- For the Q4 Micron forecasts diluted earnings per share in the region between $1.43 and $1.83 on revenue of $6.8B and $7.6B. Analyst forecasts had seen EPS at $2.69, with sales of $9.31B.
- Micron’s warning indicates that the chipmaker market is starting to show weakness after two years where the pandemic boosted sales as many companies and schools moved to work from home models.
Micron Technology (MU.US) stock fell sharply in premarket and if current sentiment prevails downward move may accelerate towards support zone around $46.00, which is marked with lower limit of the 1:1 structure and 78.6% Fibonacci retracement of the bullish wave started in March 2020. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
