© Reuters Micron Technology (MU) to guide below estimates, but Citi still positive
By Sam Boughedda
Citi analysts said the firm expects Micron Technology (NASDAQ:) to miss estimates when it releases fiscal first quarter 2023 today after market close.
“We expect the company to report and guide below our estimates and Consensus given the DRAM collapse; however, our reasons to be positive on Micron remain unchanged,” wrote analysts, who reiterated a Buy rating and $75 price target on the stock.
However, they also see capex and utilization cuts by Micron and Hynix creating a bottom in 1Q23, with Micron “trading close to trough valuation.”
The “print is gonna be ugly,” the analysts declared. “We expect Micron to report F1Q23 revenue below our estimate of $4.25 billion (down 36% QoQ) and Consensus of $4.14 billion (down 38% QoQ), and F1Q23 EPS below our estimate of ($0.09) and Consensus of ($0.07) due to deteriorating DRAM pricing.”
They added that the guide will be even worse. “We expect Micron to guide F2Q23 sales below our estimate of $4.00 billion (down 6% QoQ) and Consensus of $3.86 billion (down 8% QoQ) with F2Q23 EPS guide below our estimate of ($0.30) and Cons of ($0.40),” they said.
“But what matters to the stock is the bottom is here. Both Micron and Hynix are pulling back on capex and utilization rates, which should create a bottom for the DRAM market in 1Q23.”
Be the first to comment