Micron's FQ3 Earnings Preview: Will weak DRAM/NAND pricing impact results?
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Micron Technology (NASDAQ:MU) is scheduled to announce its fiscal third quarter earnings results on Thursday, June 30th, after market close.
Last quarter, Micron (MU) topped expectations with its FQ2 financial figures and offered an upbeat forecast. The management had at the time guided for Q3 revenue of $8.7B, gross margin of 48% and adj. EPS of $2.46.
The consensus EPS Estimate is $2.45 (+30.3% Y/Y) and the consensus Revenue Estimate is $8.66B (+16.7% Y/Y).
The semiconductor company, which specializes in DRAM and NAND memory storage, has seen shares fall sharply since the start of June, hurt by a cautious outlook by industry heavyweight Intel (INTC).
Ahead of the third-quarter results, investment firm Citi cut its revenue and earnings estimates on the semiconductor company, noting the "collapsing" DRAM market. For full-year 2023, Citi now expects Micron (MU) to generate $33.5B in revenue and $8.79 in earnings per share, down from a prior outlook of $40B and $13.28 in earnings per share. For third quarter, revenue is seen at $8.4B - well below the company's own guidance.
Earlier this week, investment firm Barclays stated that weak pricing in both the DRAM and NAND markets could cause the company to miss third-quarter estimates and provide weak guidance.
Wells Fargo also cut Micron's (MU) Q3 estimates, but remained positive into the earnings due to the fact that memory will "play an increasingly important role in core-to-edge compute," along with Micron's (MU) competitive positioning and execution being able to support earnings in a down cycle and the company's strong balance sheet and capital return program.
SA Quant system and SA Authors' rate the stock at buy.
Over the last 2 years, MU has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 23 upward revisions and 4 downward. Revenue estimates have seen 24 upward revisions and 2 downward.
MU shares have shrunk ~42% YTD and 34% over the past year.
A look at YTD price performance of Micron against peers:

"Micron Technology has taken a beating this year due to a combination of overall tech weakness and falling DRAM prices," noted a recent analysis published on SA.