Earnings Results: Micron’s weak forecast adds to Wall Street concerns that chip demand is drying up

by | Jun 30, 2022 | Stock Market

Micron Technology Inc. added to Wall Street fears late Thursday that customers may have loaded up on chips during the shortage after the memory-chip maker forecast a poor outlook following earnings that topped expectations. Micron 
 expects adjusted fourth-quarter net income of $1.43 to $1.83 a share on revenue of $6.8 billion to $7.6 billion. Analysts had forecast $2.60 a share on revenue of $9.15 billion.

“Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” said Sanjay Mehrotra, Micron’s chief executive, in a statement. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.” Micron shares, which had fallen as much as 5% after hours, were last down 1%, following a 1.3% decline in the regular session to close at $55.28. For the fiscal third quarter, the Boise, Idaho-based chip maker reported net income of $2.63 billion, or $2.34 a share, compared with $1.74 billion, or $1.52 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.59 a share, compared with $1.88 a share in the year-ago period. Revenue rose to $8.64 billion from $7.42 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of $2.43 a share on revenue of $8.64 billion, based on Micron’s forecast of …

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