first swallow for chips; Micron’s profit is expected to be cut by 42%

Micron chip company







Page Quote News Graphs Company Profile Recommendations

More articles on the subject:

It is expected to open the renewed report season for the third quarter when it will report today after trading, and will give a picture of the state of the chip sector, which according to the sharp declines in chip shares – is priced as a weak sector, with no demand and no growth in the future.

Micron’s performance in the third quarter is expected to be adversely affected by consumer spending that weakens due to growing inflationary pressure and fears of a global economic slowdown. The weakening of consumer spending resulted in a decrease in demand for memory chips for computers and smartphones.

However, Micron expects demand for memory chips in the data center market to remain strong, driven by increased enterprise investment in cloud computing adoption and digital transformation initiatives. Moreover, a steady increase in memory fiber shipments to the graphics, 5G and automotive markets are expected to be a major catalyst.

Overall, Micron is expected to show a significant decline in both revenues and earnings per share. Analysts’ expectations are in line with the company’s forecasts published at the beginning of August (extension below) when they expect revenues of 6.58 billion dollars. The figure reflects an 18% decline in revenues from the corresponding quarter. Earnings per share are expected to be cut by 42% from the corresponding quarter when analysts expect earnings per share of $1.39 per share.

At the beginning of August, Micron announced that revenues for the current quarter would be between 6.8 and 7.6 billion dollars, and even gave the possibility that they would come in below the range. The previous forecast was for revenues in the amount of about 7.26 billion dollars, so what happened is that Micron cut the forecasts for the report that will be published today. Micron has already announced that the gross profit is expected to stand at 3 billion dollars, the operating profit at 2 billion dollars.

“We anticipate a challenging market in the fourth quarter of 2022 and the first quarter of 2023, in addition, we anticipate that our free cash flow in the first quarter of 2023 will be negative.” provided by the company.

Comments to the article(0):

Your response has been received and will be published subject to the system policy.

for a new comment

Your response was not sent due to a communication problem, please try again.

Return to comment


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick