Micron Technology, a leading memory-chip manufacturer, is set to announce its fiscal third-quarter results after the market closes on Wednesday. Here are the key details you need to know.
Net Income
According to a survey conducted by FactSet, analysts expect Micron Technology to report a loss of $1.27 billion for the quarter ended November 30th. This is a significant increase compared to the loss of $195 million recorded during the same period last year.
Revenue
Analysts also anticipate an increase in revenue from $4.09 billion to $4.58 billion year-over-year. Micron Technology has previously issued a revenue outlook for the quarter, stating that it is "approaching $4.7 billion."
Adjusted Loss
On an adjusted basis, excluding certain one-time items, analysts predict a loss of $1.01 per share. This contradicts the company's own guidance, which estimates a loss of approximately $1 per share.
Micron Technology's stock experienced an 8.1% rise during the quarter and is currently trading at $81.56 per share.
Key Factors to Watch
There are several factors that investors should keep an eye on with regards to Micron Technology:
Pricing Recovery
Investors have long anticipated an increase in selling prices for memory chips, and Micron Technology recently updated its guidance to reflect improved pricing. The market will be closely watching for any indications that this improved pricing is positively impacting the company's overall performance, as Micron has reported four consecutive quarterly losses.
Demand Outlook
Another crucial aspect for Micron Technology is the demand for its chips. The company stated in its fiscal fourth-quarter results that it expects a recovery in 2024, driven by higher demand and more disciplined supply. Increased demand stemming from artificial intelligence applications is particularly important, and investors will be eager to see signs that this boost is imminent.
Impact of Chinese Government Restrictions
Micron Technology also faces headwinds due to the Chinese government's ban on buying its chips. At a recent conference, CEO Sanjay Mehrotra announced that the company is actively working to regain lost market share. Investors are keen to receive the latest update on how these restrictions are affecting Micron's business.
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